Former Celsius CEO Alex Mashinsky Forfeits All Claims to Bankruptcy Proceeds
Alex Mashinsky, former CEO of Celsius, has agreed to forfeit all claims to the bankrupt crypto lender's assets, facilitating additional distributions to creditors. The agreement, filed in the U.S. Bankruptcy Court, bars Mashinsky and three related entities from receiving any bankruptcy proceeds. All claims submitted by Mashinsky will be withdrawn and disallowed under the Chapter 11 bankruptcy plan. This decision allows reserved assets to be redistributed to other creditors. Celsius filed for Chapter 11 bankruptcy in July 2022 due to a liquidity crisis and has since transitioned to a recovery-focused entity. Mashinsky was sentenced to 12 years in federal prison for defrauding customers and manipulating the CEL token price. As of August 2024, over $2.5 billion has been distributed to approximately 251,000 creditors, covering 93% of total claims, but around 121,000 eligible creditors have yet to claim their funds, most owed less than $100.
