Former Celsius CEO Mashinsky gives up on bankruptcy asset claims, creditors will have priority in fund distribution.

GasFeeLady · 2025-06-17T07:20:27+00:00

Former Celsius CEO Alex Mashinsky and his company will waive claims against Celsius's bankruptcy assets, prioritizing repayment to creditors. Celsius has paid over $2.5 billion, but there are still about 121,000 creditors who have not made claims. Mashinsky was sentenced to 12 years for encryption fraud.

GasFeeLady

2025-06-17 07:20:27

Abstract generation in progress

On June 17, according to a ruling by the U.S. Bankruptcy Court for the Southern District of New York, former Celsius CEO Alex Mashinsky and his related entities will no longer participate in the distribution of Celsius’s bankruptcy assets. The court has decided to prioritize the return of funds to creditors, and Mashinsky along with AM Ventures Holdings Inc., Koala1 LLC, and Koala3 LLC have agreed to waive their claims against Celsius’s bankruptcy assets.

As of now, Celsius creditors have claimed over $1 billion in total. In August 2024, Celsius paid over $2.5 billion to more than 251,000 creditors, but approximately 121,000 creditors have not filed claims due to amounts less than $1,000. In November 2024, Celsius announced that it would pay $127 million from its “litigation recovery account” to creditors, including retail borrowers, retail depositors, and users of its Earn program. Celsius reached two settlement agreements in July 2023 to exit the Chapter 11 bankruptcy proceedings initiated in July 2022.

According to previous reports, former Celsius CEO Alex Mashinsky has been sentenced to 12 years in prison for cryptocurrency fraud.

ALEX-5.32%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

11 Likes