Latest Update (as of September 25, 2026): The regulatory side of the Celsius case wrapped up over the summer. On July 20, 2026, the FTC finalized settlement orders requiring former Celsius executives Alex Mashinsky, Shlomi Daniel Leon, and Hanoch “Nuke” Goldstein to pay a combined $16.5 million to resolve charges they deceived users about the safety of their deposits, with Mashinsky and Leon also agreeing to bans on marketing deposit or investment products. Separately, on June 18, 2026, the CFTC closed out its own case against Mashinsky with a consent order imposing permanent trading and registration bans. Mashinsky, now serving his 12-year sentence, also filed a pro se motion in late May 2026 to vacate that sentence, citing ineffective counsel — a motion still pending as of this writing.
Last updated: September 2026
If you had money in a Celsius Network account, you may be entitled to compensation from the celsius lawsuit and the ongoing bankruptcy distribution process in 2026.
Celsius Network froze customer funds in June 2022, leaving over 1.7 million users locked out of roughly $4.7 billion in assets. That moment set off a chain of legal events, criminal charges, and court battles that are still playing out today.
In this article, you’ll learn exactly who qualifies for a claim, how much customers are actually recovering, what Alex Mashinsky’s criminal conviction means for your case, and what steps to take before key 2026 deadlines.
The short version: distributions are happening, the criminal case is resolved, and 2026 is the year most affected customers will see their final recovery amounts.
Celsius Lawsuit Overview: What Happened and Why It Matters
The Celsius lawsuit refers to a collection of legal actions, including bankruptcy proceedings, civil class action suits, and federal criminal charges, all stemming from Celsius Network’s collapse in 2022.
Celsius marketed itself as a safe, high-yield platform for cryptocurrency. Customers deposited Bitcoin, Ethereum, stablecoins, and other assets in exchange for interest payments sometimes reaching 18% annually. That pitch turned out to be built on deception.
In June 2022, Celsius froze all withdrawals without warning. Weeks later, the company filed for Chapter 11 bankruptcy protection in the Southern District of New York under Case No. 22-10964.
What followed was one of the most complex crypto insolvency cases in U.S. history, with investigations from the SEC, CFTC, and FTC all running simultaneously alongside the bankruptcy proceedings.
| Key Case Detail | Information |
|---|---|
| Company | Celsius Network LLC |
| Bankruptcy Filed | July 13, 2022 |
| Court | U.S. Bankruptcy Court, SDNY |
| Case Number | 22-10964 |
| Presiding Judge | Judge Martin Glenn |
| Total Customer Claims | Approximately $4.7 billion |
| Customers Affected | Over 1.7 million globally |
The case matters because it set legal precedent for how crypto companies can treat customer deposits and what disclosures they owe their users.
Key Takeaway: The Celsius lawsuit is not one single case. It is a web of criminal charges, civil suits, and bankruptcy proceedings that together determine how much customers recover.
Alex Mashinsky Fraud Charges and Guilty Plea
Alex Mashinsky, Celsius Network’s founder and former CEO, faced seven federal criminal charges including securities fraud, commodities fraud, and wire fraud.
Prosecutors from the Department of Justice alleged that Mashinsky deliberately misled customers about the safety of Celsius’s financial position while personally cashing out millions in CEL tokens before the platform’s collapse.
In December 2024, Mashinsky pleaded guilty to commodities fraud and a separate charge of manipulating the price of CEL token, the company’s proprietary cryptocurrency. He admitted in open court to knowingly deceiving customers.
| Charge | Details |
|---|---|
| Commodities Fraud | Misrepresenting Celsius financial health to customers |
| Market Manipulation | Artificially inflating the price of CEL token |
| Wire Fraud (Dropped) | Part of plea agreement |
| Securities Fraud (Dropped) | Part of plea agreement |
The guilty plea was significant. It locked in factual admissions that civil attorneys are now using to support claims in the class action lawsuits running parallel to the bankruptcy case.
Mashinsky’s willingness to plead guilty also eliminated years of potential criminal trial proceedings, which had been delaying some civil recovery timelines.
Alex Mashinsky Sentencing: What the Criminal Case Means for Victims
Alex Mashinsky was sentenced in May 2025 to 12 years in federal prison, one of the harshest sentences handed down in a crypto fraud case to date.
The sentence sent a direct message to the crypto industry. But beyond the headlines, victims want to know what a 12-year sentence actually means for their money. The short answer: it helps your civil case but does not automatically put cash in your pocket.
A criminal conviction creates what lawyers call collateral estoppel. In plain terms, Mashinsky cannot re-argue in civil court the facts he already admitted to in his guilty plea. That makes class action plaintiffs’ jobs significantly easier.
Think of it like this: if someone admits to hitting your car in a police report, you don’t have to prove the accident happened in your civil lawsuit. The admission is already on record. Mashinsky’s guilty plea works the same way for civil claimants.
| Impact Area | What the Sentencing Means |
|---|---|
| Civil Class Action | Guilty plea strengthens fraud claims |
| Bankruptcy Recovery | No direct impact on distribution amounts |
| Asset Seizure | Government seeking $48 million in forfeiture |
| Future Litigation | Co-defendants may face pressure to settle |
The criminal case also triggered a forfeiture demand. The DOJ sought over $48 million from Mashinsky personally, which could eventually be directed toward a victim restitution fund.
Celsius Network Bankruptcy: How the Case Unfolded
The Celsius bankruptcy case moved through several major phases between 2022 and 2026, and understanding those phases helps you understand where your claim stands today.
Celsius filed Chapter 11 in July 2022. Chapter 11 is a reorganization bankruptcy, not a liquidation. That meant Celsius could attempt to restructure and continue operations rather than simply sell everything and shut down.
After months of court battles, asset sales, and plan negotiations, Judge Martin Glenn confirmed the Celsius reorganization plan in November 2023. The plan centered on transferring assets to a new entity, backed by a group called Fahrenheit LLC, which won a competitive bidding process to take over Celsius’s mining operations and institutional loan portfolio.
| Bankruptcy Phase | Date | What Happened |
|---|---|---|
| Withdrawal Freeze | June 12, 2022 | All customer withdrawals halted |
| Chapter 11 Filed | July 13, 2022 | Celsius files for bankruptcy protection |
| Creditor Committee Formed | August 2022 | Official committee represents retail creditors |
| Bar Date (Claim Deadline) | January 3, 2023 | Deadline to file proof of claim |
| Plan Confirmed | November 2023 | Judge Glenn approves reorganization plan |
| First Distributions Begin | Early 2024 | Initial crypto distributions to eligible creditors |
| Ongoing Distributions | 2025 to 2026 | Continued payouts under confirmed plan |
The plan created a new company, referred to as Newco, and distributed equity stakes and liquid assets to creditors based on their account type and claim amount.
Key Takeaway: The Celsius bankruptcy is confirmed and distributions are actively happening. The key question in 2026 is not whether customers will recover something but how much and whether you filed your claim in time.
Who Qualifies for the Celsius Lawsuit or Settlement Claim
You may qualify if you held assets on the Celsius platform at any point before June 12, 2022, the date Celsius froze withdrawals.
Eligibility is primarily determined by the type of account you held and whether you filed a proof of claim before the court’s bar date of January 3, 2023. If you missed the bar date, options are more limited but not necessarily nonexistent.
The broadest category of eligible claimants are unsecured creditors. For Celsius, that mostly means customers who used Earn accounts, where Celsius took ownership of deposited assets in exchange for interest payments.
| Who Qualifies | Basic Criteria |
|---|---|
| Earn Account Holders | Held crypto in interest-bearing accounts before June 2022 |
| Custody Account Holders | Held crypto that Celsius stored but did not use |
| Withhold Account Holders | Had assets in disputed tax-withholding accounts |
| Institutional Lenders | Companies or funds that lent capital to Celsius |
| CEL Token Holders | May qualify but at significantly lower priority level |
If you are outside the U.S., eligibility gets more complicated. Celsius had millions of international customers. Cross-border claims are still being processed as of 2026, and international claimants face additional documentation requirements.
If you never filed a claim but believe you should have, contact the claims administrator Stretto directly to ask about late filing procedures.
Celsius Earn Account vs. Custody Account: How Your Account Type Affects Your Claim
Your account type at Celsius is one of the single biggest factors in how much you recover and through what process.
Earn account holders faced the most complicated path. When you deposited funds into an Earn account, Celsius’s terms of service transferred legal ownership of your crypto to Celsius. That made you an unsecured creditor in bankruptcy, meaning you stand behind secured lenders in the repayment queue.
Custody account holders had a better argument. Celsius did not take ownership of Custody assets. Judge Glenn ruled that Custody account assets were not property of the bankruptcy estate, meaning those customers had a stronger claim to direct return of their assets.
| Account Type | Legal Status | Recovery Priority | Estimated Recovery Rate |
|---|---|---|---|
| Earn Account | Unsecured creditor | Lower priority | Roughly 60 to 70 cents per dollar (in crypto equivalent) |
| Custody Account | Asset owner | Higher priority | Higher, closer to full return of in-kind assets |
| Withhold Account | Disputed | Case by case | Pending individual resolution |
| Institutional Loan | Secured creditor | Highest priority | Near full recovery in many cases |
The distinction between Earn and Custody was a central legal debate during the bankruptcy. The court’s ruling on Custody accounts was a significant win for those customers but left Earn account holders in a harder position.
Think of it like the difference between giving a bank your money to invest versus putting valuables in a safe deposit box. The bank uses your deposited money and you become a creditor. Your safe deposit box contents still belong to you regardless of what happens to the bank.
How Much Will Celsius Customers Get Back in 2026
Most Celsius customers are recovering somewhere between 60% and 85% of their claim value, depending on their account type, the timing of distributions, and cryptocurrency price movements.
That range matters because Celsius’s plan distributes assets partly in Bitcoin and Ethereum rather than cash. If crypto prices rise before you receive your distribution, you could end up with more dollar value than expected. If prices drop, you get less.
The plan also distributes equity in Newco, the new company formed from Celsius’s restructured assets. The value of that equity is uncertain and depends on how Newco performs over time.
| Recovery Factor | Impact on Your Payout |
|---|---|
| Account Type (Earn vs. Custody) | Earn holders recover less on average |
| Claim Filing Date | Late filers may receive reduced distributions |
| Crypto Price at Distribution | Higher prices mean more dollar value received |
| Newco Equity Value | Unknown; depends on future company performance |
| CEL Token Claims | Lowest recovery priority, likely minimal return |
Early distribution data from 2024 and 2025 showed that eligible Earn account holders received roughly 67 cents on the dollar in a combination of Bitcoin, Ethereum, and Newco equity.
Custody account holders received closer to full in-kind recovery for the crypto they held, minus some administrative fees and deductions.
Key Takeaway: Your actual dollar recovery depends on crypto market conditions, your account type, and when your distributions are processed. Do not assume the headline recovery percentages apply to your specific situation without checking your claim details directly with Stretto.
Celsius Settlement Distribution Plan Explained
The Celsius distribution plan, confirmed by Judge Glenn in November 2023, is the legal blueprint for how Celsius’s remaining assets get paid out to creditors.
The plan is structured in tiers. Secured creditors and administrative costs get paid first. Then Custody account holders receive their assets. Then Earn account holders and other unsecured creditors share what remains, distributed pro rata based on their verified claim amounts.
Pro rata simply means proportional. If the estate has $3 billion left for unsecured creditors and your verified claim is $30,000, you receive the same percentage as every other unsecured creditor, not a flat dollar amount.
| Distribution Tier | Who Gets Paid | When |
|---|---|---|
| Tier 1 | Administrative costs, professional fees | First, ongoing |
| Tier 2 | Secured creditors | Second, largely completed |
| Tier 3 | Custody account holders | Third, mostly completed by mid-2024 |
| Tier 4 | Earn account holders (unsecured) | Ongoing through 2026 |
| Tier 5 | CEL token holders and equity claims | Last, if anything remains |
| Newco Equity | All eligible creditors | Ongoing, subject to Newco performance |
Distributions are happening in multiple rounds. Not everyone receives their full payment at once. Some creditors are receiving installment distributions spread across 2024, 2025, and 2026.
If you have not received anything yet, verify your claim status on the Stretto claims portal before assuming there is a problem.
Celsius Class Action Lawsuit vs. Bankruptcy Claim: What Is the Difference
The bankruptcy claim and the class action lawsuit are two separate legal processes, and confusing them can cost you money.
Your bankruptcy claim is filed directly with the court through the claims administrator. It is based on what you are owed as a creditor of Celsius’s bankruptcy estate. This process is largely automatic if you filed on time, and it determines your share of the bankruptcy distributions.
The class action lawsuit is a separate civil suit brought by plaintiffs’ attorneys on behalf of customers who claim Celsius and its executives committed fraud, made false statements, and violated consumer protection laws. This lawsuit targets not just Celsius’s assets but also the personal assets of executives like Mashinsky.
| Feature | Bankruptcy Claim | Class Action Lawsuit |
|---|---|---|
| Who Manages It | Bankruptcy court, Stretto | Plaintiffs’ attorneys |
| What It Covers | Your share of estate assets | Fraud damages, deceptive practices |
| Filing Required By You | Yes, proof of claim | Typically no, you are auto-included if class is certified |
| Potential Recovery | Based on verified claim amount | Additional damages beyond estate recovery |
| Timeline | Active distributions 2024 to 2026 | Resolution likely 2026 or later |
| Cost to You | None | Contingency fee from any recovery |
You can potentially recover through both processes. The bankruptcy gives you your proportional share of the estate. The class action, if successful, could add additional compensation for the fraud itself, above and beyond what the estate covers.
Regulatory Actions Against Celsius Network
Federal and state regulators moved aggressively against Celsius even before the criminal charges against Mashinsky were filed.
The FTC reached a settlement with Celsius Network in July 2023 that banned the company from ever operating as a crypto lending platform again and required it to pay over $4.7 billion in consumer relief. That relief was largely folded into the bankruptcy distributions rather than creating a separate payment process.
The SEC alleged Celsius sold unregistered securities through its Earn accounts. The CFTC brought separate commodities fraud charges against the company and Mashinsky specifically.
| Agency | Action | Outcome |
|---|---|---|
| FTC | $4.7 billion settlement | Merged into bankruptcy recovery |
| SEC | Unregistered securities charges | Resolved as part of bankruptcy proceedings |
| CFTC | Commodities fraud charges against Mashinsky | Supported criminal guilty plea |
| State Regulators | Multiple states (TX, NJ, VT, others) | Celsius barred from operating in multiple states |
The regulatory pile-on was unusually broad for a single company. It reflected how aggressively Celsius had marketed its products across multiple regulatory domains, touching securities law, commodities law, and consumer protection law simultaneously.
For customers, the regulatory actions added legal weight to individual claims but did not create separate payouts outside the bankruptcy estate framework.
How to File a Celsius Network Claim in 2026
If you missed the original January 3, 2023 bar date, your options in 2026 are limited but not necessarily zero.
For customers who did file on time, the Stretto claims portal is where you manage your claim, check your distribution status, and update your payment information. Stretto is the official claims administrator appointed by the bankruptcy court.
To receive distributions, you must complete identity verification (KYC, or Know Your Customer) through the platform Celsius designated for payouts. Failure to complete KYC is one of the most common reasons customers have not received distributions they are entitled to.
| Step | Action Required | Where |
|---|---|---|
| 1 | Verify you filed a proof of claim | Stretto claims portal |
| 2 | Complete identity verification (KYC) | Distribution platform (Coinbase or designated platform) |
| 3 | Confirm wallet or bank account for distribution | Distribution platform |
| 4 | Monitor claim status for each distribution round | Stretto portal |
| 5 | Report any discrepancies in claim amount | File objection through Stretto or consult attorney |
If you never filed a proof of claim and the bar date has passed, you may still petition the court for late-filing relief under Federal Rule of Bankruptcy Procedure 9006. Courts grant these requests in cases of excusable neglect, but they are not automatic.
Key Takeaway: Completing your KYC verification is the single most important action step for anyone who has a Celsius claim but has not yet received distributions in 2026.
Celsius Lawsuit Filing Deadline: Key Dates You Cannot Miss
The original proof of claim deadline was January 3, 2023, and that date is long past. But there are still active deadlines in 2026 that affect whether and how much you recover.
Distribution rounds have their own opt-in or verification deadlines. If you fail to complete required verification steps by a given distribution round’s cutoff date, you may miss that round’s payout entirely and have to wait for the next one.
Objection deadlines matter too. If Stretto sends you a notice that your claim amount has been disputed or adjusted downward, you typically have 30 days to file a formal objection. Missing that window can permanently reduce your recovery.
| Deadline Type | Approximate Date | Consequence of Missing |
|---|---|---|
| Original Proof of Claim Bar Date | January 3, 2023 (passed) | Late filers require court petition |
| KYC Verification Cutoffs | Ongoing per distribution round | Miss a distribution round |
| Claim Objection Response | 30 days from notice (rolling) | Claim amount reduced without appeal |
| Newco Equity Election Deadlines | Check Stretto regularly in 2026 | May forfeit equity stake options |
| Class Action Opt-Out Deadlines | TBD if class certified | Affects ability to sue separately |
The single best thing you can do right now is log into the Stretto portal and verify that your claim is active, your KYC is completed, and your distribution payment method is current.
Do not assume because you filed a claim in 2022 or 2023 that everything is automatically in order for 2026 distributions.
Celsius Lawsuit Timeline: From Freeze to 2026 Distributions
The Celsius lawsuit timeline spans four years of legal action, and knowing where things stand helps you understand what comes next.
The story starts in June 2022 when Celsius froze accounts overnight. At that point, most customers had no idea the company was insolvent. From there, events moved quickly.
| Date | Event |
|---|---|
| June 12, 2022 | Celsius freezes all withdrawals and transfers |
| July 13, 2022 | Chapter 11 bankruptcy filed in SDNY |
| August 2022 | Official creditor committee formed |
| January 3, 2023 | Proof of claim bar date (filing deadline) |
| July 2023 | FTC settlement announced, $4.7 billion in relief |
| July 2023 | Alex Mashinsky indicted on federal fraud charges |
| November 2023 | Reorganization plan confirmed by Judge Glenn |
| Early 2024 | First distributions begin for eligible creditors |
| December 2024 | Mashinsky pleads guilty to commodities fraud |
| May 2025 | Mashinsky sentenced to 12 years in federal prison |
| 2025 to 2026 | Ongoing distributions, Newco equity issuances |
| 2026 | Final distribution rounds expected for most creditors |
The case has moved significantly faster than many expected for a crypto bankruptcy of this scale. The FTX bankruptcy, for comparison, involved similar complexity but is projected to take longer to fully resolve.
2026 is expected to be the final major year of active distributions under the current plan, though some disputed claims and class action suits may extend beyond that.
What Celsius Customers Are Actually Getting Back
The real-world recovery experience for Celsius customers varies significantly depending on account type, claim size, and how quickly they completed verification steps.
Custody account holders have largely recovered close to the full value of their assets in kind, meaning they received their Bitcoin back as Bitcoin, their Ethereum back as Ethereum. The amounts were based on valuations at a specific court-determined date, not current market prices, which matters a lot given crypto’s volatility.
Earn account holders, the largest group, are receiving a combination of Bitcoin, Ethereum, and Newco equity. The Bitcoin and Ethereum portions of distributions have already provided meaningful recovery for many users.
| Claimant Type | What They Received | Approximate Value Recovery |
|---|---|---|
| Custody Account Holders | Crypto returned in kind | 85% to 95%+ of claim value |
| Earn Account Holders | Crypto + Newco equity | 60% to 72% of claim value in liquid assets |
| Small Claim Holders (under $5,000) | Simplified cash distribution option | Varies by election |
| CEL Token Holders | Pro rata share of residual estate | Potentially under 10 cents on dollar |
| Institutional Creditors | Negotiated settlements | Near full recovery in most cases |
One thing most coverage misses: customers who received their distributions in early 2024 when Bitcoin was around $40,000 have seen significant paper gains as crypto prices rose in 2024 and 2025. Those who received Bitcoin distributions and held them ended up recovering more in dollar terms than the initial percentage suggested.
Key Takeaway: The actual dollar value of your Celsius recovery depends heavily on when you received distributions and what you did with the crypto afterward, not just on the official recovery percentage listed in court documents.
Celsius Lawsuit 2026 Update: Where Things Stand Right Now
As of 2026, the Celsius bankruptcy case is in its final major phase, with ongoing distributions and some unresolved disputes still working through the court system.
The criminal case against Mashinsky is closed, with his 12-year sentence handed down in May 2025. Co-defendants and other Celsius executives who faced separate charges are at various stages of their own proceedings.
The class action lawsuits running parallel to the bankruptcy are progressing toward class certification decisions. If certified, class members would likely receive additional compensation above their bankruptcy distributions, paid from whatever personal assets plaintiffs’ attorneys can recover from Mashinsky and other named defendants.
| 2026 Status Area | Current Situation |
|---|---|
| Bankruptcy Distributions | Ongoing final rounds for Earn account holders |
| Newco Equity | Being issued to eligible creditors, value uncertain |
| Criminal Case | Closed; Mashinsky serving sentence |
| Class Action Lawsuits | Active; class certification proceedings underway |
| Regulatory Actions | FTC settlement integrated; SEC and CFTC resolved |
| International Claims | Still being processed, additional verification required |
| Disputed Claims | Individual resolution ongoing through bankruptcy court |
The most pressing issues for individual customers in 2026 center on completing any remaining verification steps, monitoring Stretto for distribution notices, and deciding whether to participate in any class action proceedings that may be moving toward settlement.
Anyone who had a Celsius account should treat 2026 as a year of active case management, not passive waiting.
Frequently Asked Questions
Is the Celsius lawsuit still active in 2026?
Yes, the Celsius lawsuit remains active in 2026 across multiple proceedings.
The bankruptcy is in its final distribution phases, and several class action lawsuits are still working through class certification.
The criminal case against Alex Mashinsky concluded with his sentencing in May 2025.
How much money can I get from the Celsius settlement in 2026?
Most Earn account holders are recovering between 60% and 72% of their claim value in Bitcoin, Ethereum, and Newco equity.
Custody account holders have recovered closer to 85% to 95% in many cases.
The exact amount depends on your verified claim, your account type, and cryptocurrency prices at the time of each distribution.
How do I know if I qualify for the Celsius lawsuit or claim?
You qualify if you held assets on Celsius before June 12, 2022, and filed a proof of claim by the January 3, 2023 bar date.
If you missed the bar date, you may still petition the bankruptcy court for late-filing relief under specific circumstances.
Check the Stretto claims portal to verify your current claim status.
What did Alex Mashinsky plead guilty to and how does that affect my claim?
Mashinsky pleaded guilty in December 2024 to commodities fraud and market manipulation of the CEL token.
His admissions create a legal record that civil attorneys can use to support fraud claims in class action proceedings.
The guilty plea does not directly increase your bankruptcy distribution but strengthens separate civil and class action recovery efforts.
What is the difference between the Celsius bankruptcy claim and a class action lawsuit?
The bankruptcy claim gives you a proportional share of Celsius’s remaining estate assets.
The class action lawsuit seeks additional damages for fraud and deception from Mashinsky and other executives personally.
You can potentially receive compensation from both, and participating in one does not eliminate your rights in the other.
The Celsius lawsuit has been a long road for over a million customers who lost access to their funds in 2022. Distributions are happening. The criminal case is resolved. And 2026 is shaping up to be the year most eligible claimants see their final payouts.
If you had a Celsius account, the most important steps right now are checking your claim status on the Stretto portal, confirming your KYC is complete, and verifying your distribution payment method is current.
Do not assume the process is automatic. Active management of your claim in 2026 is the difference between receiving what you’re owed and leaving money on the table.
