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 67–85 cents on the dollar in asset value terms, though the dollar value recovered 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.
Celsius Claim Guide
Full step-by-step guide to checking and completing your Celsius Network claim.
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