Celsius Network will begin its third round of fund distributions to eligible creditors on August 20, 2025. The defunct crypto lender confirmed that $220.6 million will be released as part of its court-approved recovery plan. The company has paid out 93% of the owed funds in previous rounds. This next tranche aims to deliver the remaining balance to creditors approved under the restructuring scheme.
According to a recent court filing, the funds will be sourced from several internal reserves. About $63.2 million will be recovered from lawsuits and other administrative fees. The filing also disclosed that $17 million came from disallowed claims connected to former CEO Alexander Mashinsky and related entities. Further, $86.4 million is being released from the disputed and contingent claims reserve, while $46.3 million and $7.7 million came from forfeited and expunged claims, respectively.
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. However, corporate creditors may receive payments in U.S. dollars rather than crypto.
Part of the recovery effort also involves equity shares of the newly formed mining unit, Ionic Digital. Celsius expects this structure 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.
Only official communication channels should be trusted for distribution updates. The third distribution shows steady progress in Celsius’s restructuring. This distribution progress may enhance confidence in other ongoing crypto bankruptcy recoveries.
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