Former Celsius CEO Alex Mashinsky waives Celsius bankruptcy rights

PANews reported on June 17 that 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' bankruptcy assets. The court decided to return the funds to creditors first, and Mashinsky and AM Ventures Holdings Inc., Koala1 LLC and Koala3 LLC have agreed to give up their claims on Celsius' bankruptcy assets.

To date, Celsius creditors have filed claims totaling more than $1 billion. In August 2024, Celsius paid more than $2.5 billion to more than 251,000 creditors, but there are still about 121,000 creditors who did not file claims because the amount was 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 its Earn program users. Celsius reached two settlement agreements in July 2023 to exit the Chapter 11 bankruptcy proceedings initiated in July 2022.

Earlier news, former Celsius CEO Alex Mashinsky was sentenced to 12 years in prison for crypto fraud .