Celsius Network collapse — what creditors were owed and recovered (2022)

Celsius Network ran a crypto lending platform whose Earn accounts paid retail depositors advertised yields of up to 17%. It froze all withdrawals, swaps and transfers on 12 June 2022 and filed for Chapter 11 in the Southern District of New York on 13 July 2022, case 22-10964, before Chief Judge Martin Glenn.

First-day filings showed about $4.3 billion of assets against $5.5 billion of liabilities, including roughly $4.72 billion owed to depositors. The Earn programme alone held about $4.2 billion across more than 600,000 users. In January 2023 the court held that Earn deposits had become property of the estate, leaving depositors as unsecured creditors rather than owners of their coins.

The plan was confirmed on 9 November 2023 and took effect on 31 January 2024. Distributions have run in four rounds: about $2.53 billion to 251,000 creditors in early 2024, a supplementary litigation-funded distribution announced in December 2024, $220.6 million in August 2025, and $344.4 million from February 2026. The fourth round was funded mainly by about $257 million from settling the estate's adversary proceeding against Tether, plus $73.7 million released from the disputed claims reserve and $9.4 million of forfeited claims. It was described as the final distribution paid in bitcoin, with later rounds moving to dollars and stablecoins.