Former Celsius, Alex Mashinsky, agreed not to apply for any assets from Celsius’s bankruptcy.
In the application submitted on Monday, the United States Bankruptcy Court for the Southern District of Up-to-date York It was found that the contract was achieved between the debtors of Celsius and Alex Mashinsky, Am Ventures Holdings Inc., Koala1 LLC and Koala3 LLC, which prohibits the division of revenues from Celsius’s bankruptcy to these latter pages.
The agreement provides that Celsius debtors may disseminate funds related to Mashinsky claims and three related entities.
In addition, the court has preserved jurisdiction regarding all matters related to this case; However, the court will not replace the ongoing criminal case.
“The court has exclusive jurisdiction to resolve all disputes related to this decision and decision”, the application read.
Alex Mashinsky prison sentence
In May, Mashinsky was sentenced to 12 years in prison after the American judge stated that the former general director of Celsius Guilta for committing fraud.
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Mashinsky’s legal team emphasized his military service and pleaded guilty in December as a basis for a more gentle judgment.
Before convicting, the US Department of Justice was looking for a 20-year-old prison for Mashinsky, although his lawyers were crying foul, saying that it would be a “death sentence.”
Celsius’s creditors recover money
Celsius’s creditors have collectively claimed So far, over $ 1 billion of assets this year.
In August 2024, Celsius paid over $ 2.5 billion over $ 251,000. However, as many as 121,000 creditors did not submit their claims due to amounts less than USD 1000, the enormous majority will lose less than $ 100.
In November 2024, Celsius stated that he would pay $ 127 million from the “court recovery account” to creditors, including retail borrowers, retail deposits and users of the earning program.
In July 2023, Celsius achieved two settlements to leave Chapter 11 bankruptcy proceedings, which were initiated in July 2022.
Chapter 11 Bankruptcy is a legal process in the USA, which allows companies to restructure without the need for direct repercussion from creditors.
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