Celsius Network Cryptocurrency Fraud & Bankruptcy Class Action
Case Overview
Celsius Network, once one of the largest cryptocurrency lending platforms in the world, abruptly froze customer withdrawals in June 2022 and filed for Chapter 11 bankruptcy in July 2022, trapping approximately $4.7 billion in customer funds. Class action lawsuits and regulatory actions followed swiftly, with plaintiffs alleging that Celsius and its founder/CEO Alex Mashinsky made materially false and misleading statements about the platform's financial health, the safety of deposited assets, and the true nature of the company's high-yield accounts—which regulators in multiple states had already flagged as unregistered securities.
Mashinsky was criminally indicted by the U.S. Department of Justice in July 2023 on seven counts of fraud, market manipulation, and securities violations. A bankruptcy reorganization plan was confirmed in late 2023, establishing a distribution trust to repay approximately 600,000 creditors. As of 2025, creditors have begun receiving distributions from the reorganization plan, which are expected to return a significant but partial percentage of original deposits. The civil class action against Mashinsky and other executives for securities fraud remains active in the Southern District of New York.
Who May Qualify
Individuals and entities that held cryptocurrency deposits, Earn accounts, or loan products on the Celsius Network platform at the time withdrawals were frozen in June 2022 and who suffered financial losses. Creditors who filed claims in the bankruptcy proceedings are the primary eligible class.
Frequently Asked Questions
Will Celsius Network customers get their money back?
Partially. The confirmed bankruptcy reorganization plan is distributing assets to approximately 600,000 creditors, with recovery rates depending on the type of claim and market conditions. Most creditors are expected to recover a meaningful portion—but not all—of their original deposits.
Was Celsius Network CEO Alex Mashinsky charged with a crime?
Yes. In July 2023, the U.S. Department of Justice indicted Alex Mashinsky on seven federal counts, including commodities fraud, securities fraud, and market manipulation. He faces significant prison time if convicted.
Can I still file a claim against Celsius Network?
The bankruptcy claims deadline has passed. However, if you filed a proof of claim in the Celsius bankruptcy, you may still be eligible for distributions under the reorganization plan. Consult a bankruptcy attorney or the Celsius claims administrator for the status of your claim.
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