Former Celsius CEO gives up bankruptcy asset claims, has been sentenced to 12 years.

According to a Deep Tide TechFlow report on June 17, the U.S. Bankruptcy Court for the Southern District of New York ruled on Monday that former Celsius CEO Alex Mashinsky and his affiliated entities have agreed to waive all claims against the assets of Celsius's bankruptcy liquidation. The court retains exclusive jurisdiction over the case but will not supersede ongoing criminal proceedings.

In May of this year, Mashinsky was sentenced to 12 years in prison for fraud, despite his defense team requesting a lighter sentence based on his military service and guilty plea. The U.S. Department of Justice had previously sought a 20-year sentence for him.

Meanwhile, Celsius creditors have successfully recovered over $1 billion in assets this year. In August 2024 alone, Celsius paid more than $2.5 billion to over 251,000 creditors, and the company also plans to pay an additional $127 million from the "litigation recovery account." Celsius exited Chapter 11 bankruptcy in July 2023 through two settlement agreements.