Former Celsius CEO Alex Mashinsky Waives Rights to Bankruptcy Distributions

Alex Mashinsky, the former CEO of the collapsed crypto lender Celsius, along with three related entities, has formally waived any rights to bankruptcy distributions from the defunct firm. The move solidifies Mashinsky's role in the company's downfall and severs his ties to potential restitution for victims who lost funds in the debacle.

A court filing in the U.S. Bankruptcy Court for the Southern District of New York explicitly bars Mashinsky and his affiliated entities—AM Ventures Holdings Inc., Koala1 LLC, and Koala3 LLC—from receiving any proceeds from the bankruptcy. All claims submitted on their behalf have been disallowed, ensuring those assets are redistributed to other creditors.

While Mashinsky agreed to forfeit assets linked to his alleged crimes, his wife has staked a competing claim to certain properties. If upheld, her assertions could diminish the pool of funds available for victims.

Jay Clayton, the U.S. attorney for the Southern District of New York, accused the Celsius founder of misleading retail investors with false promises—a stark reminder of the risks lurking in the crypto space.