According to BlockBeats, on August 20, Cointelegraph disclosed that Celsius will begin its third distribution to eligible creditors, totaling US$220.6 million, which will bring the cumulative recovery rate to approximately 64.9% of the claim value.
As BlockBeats previously reported, on May 9th, Celsius founder Alex Mashinsky was sentenced to 12 years in prison for crypto fraud. He received sentences of 120 months and 144 months, respectively, for two counts (to be served concurrently). Mashinsky agreed to forfeit $48 million and several properties. Prior to Celsius's collapse in 2022, Mashinsky repeatedly lied to investors about the security of their deposits. Prosecutors allege that he falsely claimed the platform had regulatory approval, insisted it never issued unsecured loans (when in fact it did), and manipulated the price of the CEL token for personal gain, accumulating over $48 million in illegal profits related to CEL alone.
