Alex Mashinsky Barred From Receiving Any Assets From Celsius Bankruptcy Claims

Celsius founder Alex Mashinsky will not receive any assets from the collapsed crypto lending platform’s bankruptcy claims.

Newly filed court documents indicate Mashinsky withdrew his claims in light of his criminal sentencing last month.

Celsius filed for bankruptcy in July 2022 after its native token, CEL, plummeted by 99, and it was unable to fulfill withdrawals.

Mashinsky was arrested in 2023 and pleaded guilty to one count of commodities fraud and one count of securities fraud last December. The Department of Justice (DOJ) said the Celsius founder falsely represented the lender as a safe and secure platform and exaggerated its potential for profitability, greatly inflating its user base.

Last month, a US district judge sentenced Mashinsky to 12 years in prison.

After the sentencing, US Attorney Jay Clayton said the Celsius founder targeted retail investors with false promises, used customer funds to place risky bets and profited tens of millions of dollars while his customers lost billions.

“America’s investors deserve better. The case for tokenization and the use of digital assets is strong but it is not a license to deceive. The rules against fraud still apply, and the SDNY (Southern District of New York) will hold those who flout them accountable for their crimes.”