Celsius Network plans to initiate its third round of fund distributions to eligible creditors, beginning August 20, 2025. The defunct crypto lender has confirmed the release of $220.6 million as part of its recovery plan approved by the court.
Third Round of Payments to Creditors
Celsius Network announced the start of its third distribution round for creditors, set to begin on August 20, 2025. This round will release $220.6 million, continuing the company's recovery process following its bankruptcy.
Sources of Funds for Payments
According to a recent court filing, the funds will be sourced from several internal reserves. Approximately $63.2 million will come from lawsuits and administrative fees. The filing also revealed that $17 million was related to disallowed claims involving former CEO Alexander Mashinsky and related entities. Additionally, $86.4 million will be released from disputed and contingent claims reserves, while $46.3 million and $7.7 million are sourced from forfeited and expunged claims, respectively.
Payment Methods and Next Steps
Most of the third-round distributions will be paid in Bitcoin (BTC) and Ethereum (ETH). Celsius stated that eligible users must complete the required Know-Your-Customer (KYC) process through approved platforms including Coinbase and PayPal. Corporate creditors may receive payments in U.S. dollars. Part of the recovery effort also involves equity shares of the newly formed mining unit, Ionic Digital. This structure is expected to increase the total recovery rate for creditors. Overall, it’s estimated that affected users could receive between 67% and 85% of their original holdings. The firm also stated that creditors should remain alert for phishing emails and fake messages, trusting only official communication channels for distribution updates.
The third distribution showcases steady progress in Celsius’s restructuring process. This distribution progress may enhance confidence in other ongoing crypto bankruptcy recoveries.
