Celsius Founder Forfeits Bankruptcy Claims Following Prison Sentence

Alex Mashinsky, the former CEO of collapsed crypto lender Celsius, has formally withdrawn any claims to the company’s remaining assets, according to new court filings.

This move follows his recent sentencing to 12 years in prison for defrauding customers during his tenure at Celsius. Prosecutors found that Mashinsky misled users about the platform’s safety and profitability, ultimately driving billions in customer losses.

Celsius went bankrupt in mid-2022 after a catastrophic crash in its native token, CEL, left it unable to process user withdrawals. Mashinsky, who once positioned himself as a champion of decentralized finance, admitted to securities and commodities fraud last year.

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Federal officials said he misused client funds to make speculative trades and enrich himself, while everyday investors bore the fallout. The Justice Department emphasized that innovation in crypto doesn’t exempt individuals from accountability, noting that financial fraud laws still apply regardless of the medium.

With Mashinsky now behind bars and stripped of any claim to Celsius’s estate, the case marks one of the most high-profile crypto prosecutions to date.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.