Quick Answer: The $10 million FTC settlement with Alex Mashinsky is a civil enforcement penalty — it is not a consumer refund program. There is no FTC claims portal for former Celsius customers, and none of that money flows to you through the FTC. Your actual recovery path is through the Celsius Chapter 11 bankruptcy estate, administered by Stretto (official site: cases.stretto.com/celsius). As of early 2026, the bankruptcy has already made four rounds of distributions covering roughly 64.9% of allowed claims — and you need to check the status of your existing claim, not file a new one. Also: there is an active phishing campaign targeting former customers right now with fake “claims portal” emails and websites. Do not click them.
Scam Alert — Read This Before You Do Anything Else: If you have received an email, text, or social media message about claiming your Celsius funds through a portal, do not click anything. Documented phishing campaigns are actively targeting former Celsius customers with fake claims websites, including a lookalike domain celssius-network[.]com (note the double “s”). Stretto has posted an official phishing warning here. The only legitimate recovery site is cases.stretto.com/celsius. If you received a suspicious message, report it to the FBI’s Internet Crime Complaint Center (IC3), the FTC, and the CFPB.
I have spent more than 30 years watching financial scandals play out in real time — from savings and loan failures to crypto collapses. The Celsius situation follows a playbook I have seen before: a dramatic headline, a huge number, the promise of accountability, and then a quieter, slower reality about what actually happens to the people who lost money.
Right now, if you are searching for how to get your Celsius money back, you will find breathless coverage of “a $4.72 billion judgment.” What that coverage often buries: almost none of that figure translates to money in your pocket. And the number most people are quoting — the FTC’s $10 million settlement with Alex Mashinsky — is a civil enforcement payment, not a consumer refund.
I want to be precise here because confusion between these categories is exactly how scammers get in the door. Let me break down what happened, what it means, and what you should actually do.
“When the headlines are big and confusing, scammers move in before the math does. Get the facts first — then protect yourself.”
Three Separate Legal Actions — Why You Need to Know the Difference
There are three different government actions against Alex Mashinsky. They involve three different agencies, three different dollar amounts, and three completely different outcomes for former customers. I want to lay them out clearly because conflating them is the root cause of misinformation — and it is exactly what the phishing scammers are counting on.
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1. The Criminal Case (DOJ/SDNY) — Concluded December 2024
In December 2024, Alex Mashinsky pleaded guilty to commodities fraud and securities fraud in the Southern District of New York. He received a 12-year federal prison sentence. As part of the criminal resolution, he also forfeited $48.3 million. That forfeiture goes to the federal government. It is not a direct consumer payment mechanism — though asset recovery in criminal cases can inform the broader landscape for creditors.
2. The FTC Civil Case — Settled April 2026
Around April 28-29, 2026, Mashinsky reached a civil settlement with the Federal Trade Commission before Judge Denise L. Cote in the Southern District of New York. (Court docket: Case 1:23-cv-06009, SDNY.) The settlement required him to pay $10 million in actual cash. The FTC had sought a much larger amount — a $4.72 billion civil judgment was entered — but Judge Cote suspended that larger figure based on Mashinsky’s limited ability to pay beyond the $10 million. (Source: The Block.) He also received a lifetime ban from operating in or promoting cryptocurrency.
Here is the critical part: this $10 million does not go to former Celsius customers. Celsius does not appear on ftc.gov/enforcement/refunds — the page where the FTC lists all active consumer refund programs. The FTC’s 2023 corporate settlement with Celsius Network itself explicitly suspended the corporate judgment and directed consumer recovery through the bankruptcy proceedings. The 2026 Mashinsky settlement follows that same logic.
One more thing to be precise about: only Mashinsky settled with the FTC. Co-founders Shlomi Daniel Leon and Hanoch “Nuke” Goldstein are still contesting the FTC’s claims in the same civil case (Case 1:23-cv-06009). No judgment has been entered against them. They are accused, not adjudicated.
3. The CFTC Case — Closed June 18, 2026
On June 18, 2026, the Commodity Futures Trading Commission closed its own action against Mashinsky. The outcome: a lifetime ban from trading and registration with the CFTC. Critically, no new monetary penalty was imposed. (CFTC Press Release 9256-26.) The CFTC case closing generated more headlines about Mashinsky’s accountability — but zero additional consumer relief money.
The Myth: “The FTC won a $4.72 billion judgment against Celsius — customers are owed money from that case.”
The Reality: That $4.72 billion civil judgment was suspended by the court. The only cash the FTC actually collected from Mashinsky is $10 million — none of which flows into a consumer refund program. The FTC’s own 2023 corporate settlement routed consumer recovery through the Celsius bankruptcy. There is no FTC claims process for Celsius customers. The only recovery mechanism for former customers is the Chapter 11 bankruptcy estate administered by Stretto.
The Real Recovery Path: The Celsius Bankruptcy Estate
If you had money on Celsius when it froze withdrawals in June 2022, your actual path to recovery runs through the Chapter 11 bankruptcy case administered by Stretto at cases.stretto.com/celsius. This is the channel the FTC itself pointed to, and the one that has been making real distributions to creditors.
Here is where things stand as of mid-2026:
- The reorganization plan became effective January 31, 2024
- The fourth distribution totaling $344.4 million was announced January 22, 2026
- Recovery has reached approximately 64.9% of allowed claims, with a target range of 67–85%
- Distributions are paid in bitcoin or USD through Coinbase, PayPal/Venmo, or Hyperwallet
- Some creditors also received Ionic Digital equity as part of the reorganization
The phrase “allowed claims” is important. Claims in this bankruptcy were filed during a specific window in 2022–2023. If you filed then, your job now is to check the status of your existing claim at cases.stretto.com/celsius — type that address directly into your browser, do not click any link from an email or social media post.
Related: There’s one payment demand that shows up in almost every impersonation scam — if anyone tells you to pay a debt, bill, or fine with gift cards, it’s always a scam.
I Have Seen This Pattern Before: A big settlement headline drops. Readers assume a government check is on the way. They stop watching the actual recovery channel. I wrote about exactly this dynamic when Amazon’s social casino settlement generated enormous headlines but no consumer payouts — and when the Cash App $45 million settlement had readers asking how to claim money before any claims process existed. The confusion is predictable, and scammers exploit it deliberately. With Celsius, the bankruptcy estate is where the real money moves — it has already made four rounds of distributions totaling hundreds of millions of dollars. The FTC’s $10 million is a regulatory enforcement action, not a consumer payment. Do not let headline confusion cost you your actual recovery.
For context on how FTC refund programs do work when the FTC actually runs one, see my coverage of the Growth Cave FTC refunds case and how the FTC mailed $1.7 million directly to Handy workers. Those are cases where the FTC built and ran a consumer distribution program. The Celsius situation is different by design — the FTC explicitly handed off consumer recovery to the bankruptcy process from the start.
What to Actually Do Right Now
- Check your claim status directly at Stretto — go to cases.stretto.com/celsius by typing it into your browser. Do not click a link from any unsolicited email or message.
- Do not respond to any unsolicited “Celsius claims” contact — legitimate distributions come through the payment method you set up when you filed your original claim. No one will contact you out of the blue with a new link.
- If you get a suspicious email, website, or call, report it to the FBI’s IC3, the FTC Report Fraud site, and the CFPB.
- If you never filed a claim during the bankruptcy window, speak with a bankruptcy attorney about your options before assuming it is too late. The NACBA attorney finder is the referral I trust most for bankruptcy counsel.
- Keep your original Celsius account documentation — deposit confirmations, account statements, withdrawal attempts — in case you need to support a claim or a late-filed proof of claim.
Key Takeaway: Three separate government proceedings concluded against Celsius’s leadership between 2024 and 2026. None of them created a consumer refund program through the FTC or CFTC. The actual money recovery for former customers runs through the Chapter 11 bankruptcy estate administered by Stretto — which has already distributed hundreds of millions in four rounds. The $10 million FTC civil payment from Mashinsky is a regulatory penalty, not a consumer claims program. Check your claim status at cases.stretto.com/celsius and do not engage with any unsolicited contact about “claiming” your funds.
FAQ
Does the $10 million FTC settlement with Alex Mashinsky go to former Celsius customers?
No. The $10 million Mashinsky paid as part of the FTC civil settlement in April 2026 is a civil enforcement penalty that goes to the federal government — not into a consumer refund program. Celsius does not appear on the FTC’s consumer refund programs page. The FTC’s own 2023 corporate settlement with Celsius Network explicitly directed consumer recovery through the Chapter 11 bankruptcy proceedings administered by Stretto, not through the FTC.
How do I get my Celsius money back?
Your recovery path runs through the Celsius Chapter 11 bankruptcy estate, administered by Stretto. If you filed a proof of claim during the 2022–2023 claims window, go directly to cases.stretto.com/celsius — type it into your browser, do not click any email link — to check the status of your existing claim. As of early 2026, the bankruptcy has distributed approximately 64.9% of allowed claims across four rounds, with a target recovery range of 67–85%. Distributions go out via Coinbase, PayPal/Venmo, or Hyperwallet.
What exactly happened to Alex Mashinsky and what does it mean for customers?
Mashinsky faced three separate proceedings. In December 2024, he pleaded guilty to commodities fraud and securities fraud and received a 12-year federal prison sentence, along with a $48.3 million criminal forfeiture. In April 2026, he settled a separate FTC civil case with a $10 million payment and received a lifetime ban from cryptocurrency. In June 2026, the CFTC closed its own action against him with a lifetime trading ban but no new monetary penalty. None of these proceedings created a direct consumer refund mechanism — that function belongs to the bankruptcy estate.
How do I know if a Celsius “claims” email or website is real or a scam?
Assume it is a scam. Stretto has published an official warning about phishing attacks targeting former Celsius customers at cases.stretto.com/celsius/content/1804-phishing-attempts/. One documented fake domain: celssius-network[.]com — note the deliberate double “s.” Legitimate communications about distributions come through the payment method and contact information you registered when you filed your original bankruptcy claim. If you receive an unsolicited message with a link or a request to “verify” your claim on a new site, do not click it. Report it to the FBI’s IC3, the FTC, and the CFPB.
Were Celsius co-founders Shlomi Daniel Leon and Hanoch Goldstein also convicted?
No. Only Alex Mashinsky pleaded guilty in the criminal case and reached the FTC civil settlement. Co-founders Shlomi Daniel Leon and Hanoch “Nuke” Goldstein are still contesting the FTC’s claims in active civil litigation — Case 1:23-cv-06009 in the Southern District of New York. No judgment has been entered against them. This is an ongoing case and I will update coverage as it develops.
I am not an attorney and nothing here is legal advice. This is information to help you understand a complicated situation so you can make an informed decision. If you had significant funds on Celsius and have questions about your claim, speak with a bankruptcy attorney — my primary referral is NACBA. What I share here is my read of the public record, not a directive on what to do.
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In the latest issue (Sep 10): Your phone company is supposed to know who’s handing it those scam calls. Some of them don’t bother.
I write Your Money Actually most weekdays — what I am watching in debt and money, and the small decisions that compound. It is free, I sell nothing, and I take no money from any company I write about.
