Former Celsius CEO Alex Mashinsky has agreed not to make claims on assets tied to the company's bankruptcy proceedings. This was confirmed by a court ruling in New York.
Asset Distribution Agreement
According to a motion filed on Monday in the U.S. Bankruptcy Court for the Southern District of New York, an agreement was reached between Celsius debtors and Alex Mashinsky, as well as his companies AM Ventures Holdings Inc., Koala1 LLC, and Koala3 LLC. This agreement prohibits the distribution of bankruptcy proceeds to the specified parties.
Mashinsky's Sentencing
In May, Mashinsky was sentenced to 12 years in prison after being found guilty of fraud. His defense team highlighted his military service and his guilty plea in December as mitigating factors. Prosecutors sought a 20-year sentence, which his lawyers argued would be a 'death-in-prison sentence.'
Repayment to Celsius Creditors
Celsius creditors have collectively claimed over $1 billion this year. In August 2024, Celsius disbursed over $2.5 billion to more than 251,000 creditors. However, approximately 121,000 creditors did not file claims, as their amounts were less than $1,000, with most losing less than $100.
The situation surrounding Celsius's bankruptcy continues to evolve, with the court retaining jurisdiction over all matters related to this case. The process of repaying creditors represents a significant step in the company's reorganization.
