Celsius Network filed for Chapter 11 bankruptcy in July 2022, freezing approximately $4.7 billion in customer assets. After years of legal proceedings, asset sales, and plan confirmations, distributions to creditors are now underway. Here's where things stand in 2026.
What Is the Current Status of Celsius Distributions?
The Celsius Plan of Reorganization was confirmed by the bankruptcy court in late 2023. The reorganised entity — Ionic Digital — was created to manage the mining business, while customer claims are being paid out through a combination of:
- Cash distributions for most retail creditors
- Liquid cryptocurrency (primarily Bitcoin and Ethereum)
- Ionic Digital equity for certain creditor classes
Distribution status: Initial distributions to eligible creditors began in early 2024 through Coinbase. Subsequent rounds have continued as additional assets are liquidated. If you haven't received anything yet and your claim is filed, check your Stretto portal account for status.
How Much Will Celsius Creditors Recover?
Recovery rates for Celsius creditors vary significantly by account type and how crypto prices moved:
- Earn account holders (most retail users): Recovery estimated at 67–72 cents on the dollar in asset value terms, though the final dollar amount received depends on when distributions are made and crypto prices at that time
- Custody account holders: These creditors had a stronger claim and generally recovered a higher percentage
- Withheld account holders: Separate treatment depending on the jurisdiction and account terms
Recovery rates quoted in news reports often reflect the value of claims at the time of bankruptcy filing. The actual dollar amount you receive depends on crypto prices when distributions occur. If Bitcoin and Ethereum have risen since your claim was valued, your distribution may be worth more in USD. If they've fallen, less.
What Do I Need to Do to Receive My Celsius Distribution?
- 1Check the Stretto portal at cases.stretto.com/celsius — this is where all claim activity is tracked for Celsius creditors
- 2Verify your claim status — confirm your claim is "allowed" and not disputed or under review
- 3Complete KYC — Celsius distributions through Coinbase require identity verification
- 4Set up your Coinbase account — US distributions went through Coinbase; international creditors may have different options
- 5Monitor email from Stretto — distribution notices are sent to the email on your account
What If I Never Filed a Celsius Claim?
The original proof-of-claim deadline for Celsius was January 2023. If you had an account but never filed, your ability to claim at this stage is extremely limited and would require filing a late claim motion with the court. This process requires a bankruptcy attorney and is not guaranteed.
However, many Celsius account holders had their claims auto-created by the estate based on account records. Check the Stretto portal using your Celsius email address before concluding that you have no claim.
What About Celsius CEO Alex Mashinsky?
Alex Mashinsky was arrested in July 2023 on federal charges including securities fraud and market manipulation. In December 2024 he pleaded guilty to commodities fraud and market manipulation of the CEL token. On May 8, 2025, he was sentenced to 12 years in federal prison and agreed to forfeit more than $49 million. His criminal case proceeded separately from the bankruptcy and does not affect creditor distributions, which are governed by the confirmed Plan of Reorganization.
Scam warning: Celsius creditors are frequent targets for recovery scams. Any company that contacts you promising to recover your Celsius funds faster — especially asking for upfront fees — is a scam. All legitimate Celsius distributions go through the Stretto-managed process.
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Start Free Search →Frequently Asked Questions About Celsius Network Recovery in 2026
What is the current status of Celsius Network distributions in 2026?
Celsius Network's bankruptcy plan was confirmed in late 2023, and distributions to creditors began in early 2024 under the confirmed plan. The Fahrenheit consortium (plan sponsors) oversaw the transition; the mining operations were carved out into a separate company called Ionic Digital. Most eligible retail creditors who completed KYC verification received their initial distribution — a mix of liquid cryptocurrency and equity interests in the successor vehicles — in 2024. Additional distributions have been made as the estate continues liquidating remaining assets. If you have not received your distribution, the most common reasons are incomplete KYC, an unverified wallet address, or a disputed claim amount. Log in to the Celsius claims portal via Stretto (stretto.com) to check your status.
How was the Celsius claim amount calculated?
Celsius creditor claims were valued based on the US dollar value of assets held in your account on the petition date (July 13, 2022). This means that if you held Bitcoin on Celsius and Bitcoin's price was lower on that date than when you deposited it, your claim reflects the lower value. The plan also differentiated between account types: Custody accounts (assets held in a wallet you controlled) had different treatment than Earn accounts (assets lent to Celsius for yield). Earn account creditors generally received the lesser recovery. Your specific claim amount and distribution terms are shown in the Stretto portal.
What were the Celsius Earn account holders entitled to?
Earn account holders were unsecured creditors, meaning they had lent their assets to Celsius in exchange for yield, and thus their claims ranked lower in the bankruptcy than Custody account holders. Under the confirmed plan, Earn creditors received a combination of liquid cryptocurrency (Bitcoin and Ethereum) and equity-like interests in the successor business entity. The recovery rate for Earn creditors was approximately 67–72% of the USD value of claims, though the final recovery depended on the subsequent performance of the successor company's equity interests.
Can I still claim if I missed the original Celsius claims deadline?
The bar date (deadline to file a proof of claim) in the Celsius case has passed. However, if your account was listed in Celsius's own records, your claim may have been automatically scheduled by the debtors — meaning you have a scheduled claim even if you never formally filed one. Check the Stretto portal to see if your email address has an associated scheduled claim. If you are not in the system at all and believe you had funds on Celsius, you can file a motion in the bankruptcy court to allow a late claim, but this requires demonstrating good cause for missing the deadline and is not guaranteed to succeed.