Celsius Begins New $220M Creditor Payments
Crypto lender Celsius Network, which suffered from the 2022 market crash, has begun its third round of creditor payments. The company intends to pay out about $220 million to creditors who have not yet received compensation.
According to Celsius Network, the distribution of funds will take place through Coinbase, PayPal, Venmo and Hyperwallet.
So far, the crypto lender has repaid only 64,9% of its obligations to clients. In total, the company owes them more than $3 billion in cryptocurrency and fiat.
Almost a year ago, Celsius said its receiver had successfully paid out more than $2,53 billion to about 251,000 creditors. That’s two-thirds of the total number of creditors eligible for the program and 93% of the total amount to be distributed. Another $127 million was distributed to creditors in November 2024.
Going forward, Celsius Network asks applicants to update their details on the official application portal to avoid delays in payments.
To raise funds to pay off debt, Celsius Network filed a multi-billion dollar lawsuit against the company Tether, accusing her of violating the loan agreement.
According to the plaintiff, Tether «wrongfully» liquidated the bitcoin collateral provided after the company’s collapse. Specifically, in June 2022, the company «fired» more than 39,500 bitcoins, using the proceeds to pay off Celsius’ $812 million in debt without complying with the terms of the agreement.
