TechFlow, June 17 — According to Cointelegraph, a U.S. Bankruptcy Court for the Southern District of New York ruled on Monday that former Celsius CEO Alex Mashinsky and his affiliated entities have agreed to relinquish all claims to Celsius's bankruptcy liquidation assets. The court retains exclusive jurisdiction over this matter but will not supersede the ongoing criminal case.
In May of this year, Mashinsky was sentenced to 12 years in prison for fraud, despite his defense team citing military service and guilty plea as grounds for leniency. The U.S. Department of Justice had previously sought a 20-year sentence.
Meanwhile, Celsius creditors have successfully recovered more than $1 billion in assets this year. In August 2024 alone, Celsius distributed over $2.5 billion to more than 251,000 creditors, with an additional $127 million planned for disbursement from the "litigation recovery account." Celsius exited Chapter 11 bankruptcy proceedings in July 2023 through two settlement agreements.
