Former Celsius CEO Alex Mashinsky has formally agreed not to pursue any assets of the company during its bankruptcy proceedings. This follows a legal agreement reached between Celsius debtors and Mashinsky.
Legal Agreement with Mashinsky
A motion filed in the United States Bankruptcy Court for the Southern District of New York revealed that this agreement allows Celsius to distribute funds previously locked due to claims from Mashinsky and three related entities. The court retained jurisdiction to oversee any disputes related to this agreement.
Mashinsky Sentenced for Fraud
In May, Mashinsky was sentenced to 12 years in prison for fraud related to the collapse of Celsius Network. His legal team sought leniency by citing his past military service, but the court did not grant this request.
Celsius Creditors Begin Recovering Funds
Despite Mashinsky's restrictions, creditors have begun to see relief. Since the start of 2024, they have claimed over $1 billion in assets, with Celsius distributing more than $2.5 billion to creditors in August 2024, even as many potential claimants opted out due to small amounts owed.
This agreement between Alex Mashinsky and Celsius paves the way for asset distribution among creditors, while Mashinsky himself is prohibited from receiving any payouts due to recent court rulings.
