Celsius Network Returns $2.53 Billion to Creditors Amid Recovery Efforts

The defunct crypto lending platform Celsius Network has begun repaying billions to its creditors.

After filing for bankruptcy in July 2022 due to a 99% crash in its token and an inability to process withdrawals, the company received court approval for a bankruptcy plan last year.

Now operating under the name “NewCo,” Celsius was given a $1.25 billion balance sheet, with $450 million of that in liquid crypto assets. Earlier this year, the company avoided Chapter 11 bankruptcy by implementing a plan to distribute $3 billion in crypto and fiat currency to its creditors.

As part of its restructuring, Celsius also planned to establish a Bitcoin mining company, Ionic Digital, Inc., under creditor control. According to recent court documents, Celsius has now repaid $2.53 billion to its creditors.

The Plan Administrator noted that the initial distribution to over 251,000 eligible creditors has been successful, with most receiving their share in liquid cryptocurrency and cash, which has increased in value since the distribution was priced in January 2024.