365int
Alex Mashinsky is officially out. The former CEO of Celsius won’t get a dime from the company’s bankruptcy estate.
A New York bankruptcy court approved a deal between Celsius and Mashinsky, plus three of his business entities. The agreement blocks them from receiving any of the funds being distributed.
The court is keeping an eye on everything related to this order but will not mess with Mashinsky’s criminal trial. Yep, he’s got bigger problems.
Legal Heat
Mashinsky was sentenced to 12 years in prison for fraud back in May. Prosecutors wanted 20 years, but his lawyers argued that was too harsh. They even brought up his military service. No luck.
The Creditors Get Cake
In 2024, Celsius paid over $2.5 billion to 251,000 creditors. More than 120,000 people didn’t file claims because their losses were small—most under $100.
In November, another $127 million was paid out from a special fund called the “Litigation Recovery Account.” This cash went to users of Celsius’ Earn program and retail depositors.
Celsius filed for Chapter 11 in July 2022. They settled two key deals in July 2023 and started distributing funds soon after.
Footnote: Chapter 11 bankruptcy lets companies restructure debts and avoid immediate payback.
