According to reports, the U.S. Bankruptcy Court for the Southern District of New York ruled that former Celsius CEO Alex Mashinsky and his related entities will no longer participate in the distribution of Celsius bankruptcy assets. The court decided to prioritize the return of funds to creditors.
Mashinsky and AM Ventures Holdings Inc., Koala1 LLC, and Koala3 LLC have agreed to waive claims against Celsius' bankruptcy assets. To date, Celsius creditors have claimed over $1 billion. Previously, Alex Mashinsky was sentenced to 12 years in prison for cryptocurrency fraud.