TLDR
- Celsius Network has started its third phase of creditor repayments, allocating $220 million to eligible claimants.
- The company is making these repayments in both cryptocurrency and cash through channels like Coinbase and PayPal.
- Celsius has now resolved approximately 64.9 percent of all creditor claims as part of its reorganization plan.
- The company generated liquidity for these payments by unstaking $250 million worth of Ethereum.
- A US court has allowed Celsius to continue its lawsuit against Tether over the liquidation of Bitcoin collateral.
Celsius Network has started the third phase of creditor repayments, allocating $220 million to eligible claimants. The company confirmed that repayments are being made in both cryptocurrency and cash. Distribution channels include Coinbase, PayPal, Venmo, and Hyperwallet.
Celsius Launches Third Creditor Payout Within a Year
The crypto lender stated on August 20 that it had entered the third round of its repayment program. Celsius explained that about 64.9% of creditor claims have now been resolved. The repayment process is part of its reorganization plan.
Celsius will begin a third distribution of $220.6 million to eligible creditors. More info here: https://t.co/A5VoaG7CCJ
— Celsius (@CelsiusNetwork) August 19, 2025
Since February, when Celsius exited its 18-month bankruptcy, the company has worked on restoring creditor confidence. It previously announced the distribution of over $3 billion in crypto and fiat assets. To achieve this, Celsius generated liquidity from several operations.
Among these efforts, Celsius unlocked $250 million by unstaking its Ethereum holdings. These funds were redirected into creditor repayments. The firm emphasized its commitment to complete distributions efficiently.
Ethereum and Cash Repayments Strengthen Reorganization
Celsius confirmed that repayment distribution has been conducted in both digital and fiat assets. The company said, “We are determined to fulfill our creditor obligations.” This statement underscored its ongoing effort to stabilize operations.
Nearly one year ago, Celsius disclosed that it had already distributed $2.53 billion to 251,000 creditors. That payout represented two-thirds of its eligible creditor base. Additionally, $127 million was paid out in November 2024.
Celsius has asked claimants to update their details through the official claims portal. The company explained that outdated information could cause delays. Furthermore, some claimants might face delays due to regulatory complications.
US Court Allows Celsius Network’s Lawsuit Against Tether
In parallel with repayments, Celsius received court approval to continue its lawsuit against Tether. The firm alleged that Tether improperly liquidated 39,500 Bitcoin collateral in June 2022. Celsius claimed the sale violated their lending agreement.
The company argued that Tether’s actions constituted fraudulent and preferential transfers under U.S. Bankruptcy Code. The disputed liquidation was used to offset Celsius’s $812 million debt. The lender asserted that the move was unlawful.
Tether had requested dismissal of the lawsuit, claiming U.S. courts lacked jurisdiction. However, the judge rejected key arguments and allowed the case to proceed. Therefore, Celsius continues pursuing recovery through litigation.
