Celsius Creditors File Motion To Recover Millions From Former CEO Alex Mashinsky
![Naga](https://en.ethereumworldnews.com/wp-content/uploads/2022/12/cropped-IMG-6187-1-50x50.jpg"></p><p>Summary:</p><ul><li>The Official Committee of Unsecured Creditors for Celsius hopes to recover millions from Alex Mashinsky, former CEO of the bankrupt crypto lender.</li><li>Creditors also filed a motion to recover funds from co-founders Shlomi Daniel Leon, Hanoch “Nuke” Goldstein, and other former high-ranking executives at the troubled lender.</li><li>The move comes amid a plan to sell Celsius to NovaWulf Digital Management.</li></ul><div class=)
The Official Committee of Unsecured Creditors for Celsius hopes to recover millions from Alex Mashinsky, former CEO of the bankrupt crypto lender. Indeed, the Committee filed a 150-page court document naming Mashinsky and a host of former executives including co-founders Shlomi Daniel Leon and Hanoch “Nuke” Goldstein.
Other prospective defendants named in the document include former CFO Harumi Urata-Thompson, former General Counsel Jeremie Beaudry, former head of Celsius trading desk Johannes Treutler, former VP of Lending Aliza Landes, and Mashinsky’s spouse Kristine Meehan Mashinky.
According to the filing, the named parties are accused of losing Celsius millions of dollars due to negligent, and self-interested operations. The documents filed also accused these execs of market manipulation regarding the CEL and covering up for Mashinsky’s reckless bets.
Furthermore, the filing noted that Mashinsky and other top execs at the bankrupt crypto lender withdrew millions from the platform in the months leading up to the lender’s crash. Court filings from the Committee echo previous reports from a 14,000-page document that doxxed Celsius users and their transaction records.
Former CEO Mashinsky in particular allegedly transferred millions and billions in digital to entities that entities like AM Ventures and Koala LLP which he owned. Mashinsky also lost the crypto lender around $200 million after investing in DeFi platform KeyFi, another venture that he was invested in.
They sat idly by as Mr. Mashinsky recklessly bet hundreds of millions of dollars on the movement of the cryptocurrency market. They covered up Mr. Mashinsky’s repeated lies about Celsius’ investments and financial condition. Finally, when it became apparent that Celsius would be required to file for bankruptcy, the Prospective Defendants withdrew assets from the sinking ship, while actively encouraging customers to keep their assets on the Celsius platform.
The Committee filing comes shortly after a scathing report from a court-appointed independent examiner exposed gross mismanagement of customer funds and Ponzi-like operations at the bankrupt crypto lender.
Celsius Proposes Selling Crypto Business To NovaWulf Digital Management.
Filings made with the bankruptcy court on Wednesday revealed plans to sell Celsius to investment firm NovaWulf Digital Management. Per the filing, smaller creditors with $5,000 or less on their balances would receive around 70% of their funds back if the move goes through.
Tokenized shares in a new public company would be allocated to larger creditors, the filing said. Also, the tokenized shares will be tradable on the Provenance blockchain in partnership with a regulated brokerage service.
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