Celsius Kicks Off Massive $220M Payout to Creditors in Third Distribution Round

Celsius just dropped another $220 million bomb on creditor accounts—their third major distribution since the crypto lender's spectacular collapse.

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The platform's moving funds faster than a degenerate trader chasing a meme coin pump. This latest round brings total distributions north of $2 billion to burned investors who've been waiting years for restitution.

Celsius continues its phased repayment strategy while navigating bankruptcy proceedings—proving even crypto's biggest disasters can't completely vaporize user assets. The distributions represent partial recovery of frozen funds, with more expected as the estate liquidates remaining holdings.

Another day, another crypto bailout—because apparently traditional finance's playbook works just fine when you're cleaning up decentralized messes.

From collapse to partial recovery

Celsius’s bankruptcy in July 2022 was primarily caused by risky financial practices, market volatility, and poor liquidity management. At its peak, the platform, which relied on unsecured lending and Leveraged trading, promised annual returns of up to 18%.

The 2022 market crash, worsened by exposure to Terra-Luna and decentralized finance losses, forced Celsius to freeze withdrawals and ultimately file for Chapter 11 with a $1.2 billion deficit.

The collapse led to the loss of billions of dollars in customer funds, regulatory crackdowns, and lawsuits against its leadership. Even though the repayment period is now past the halfway point, many creditors still experience a slow recovery that falls short of full compensation.