Alex Mashinsky News

The stunning collapses of Celsius and FTX destroyed many lives — early adopters who had the foresight to understand the unique value propositions of Bitcoin (BTC) and crypto were left with practically nothing when both platforms halted withdrawals, shuttered their doors and eventually filed for bankruptcy. While there’s still hope that creditors will be made partially whole again, the road to recouping financial losses is expected to be long. While they’re waiting, creditors are banding together to sue these firms for various alleged infractions. 

Digital asset investment firm Novawulf Digital Management has reached a deal with crypto lender Celsius to buy its lending operations and help bring an end to its bankruptcy case.

The bankrupt crypto lender Celsius is taking legal action against its former CEO Alex Mashinsky and a number of others to seek the return of “millions of dollars.”

The official committee of Celsius creditors is proposing to sue Celsius co-founder Alex Mashinsky and other executives for "fraud, recklessness, gross mismanagement and self-interested conduct" that eventually led to the collapse of the crypto lender.

A federal bankruptcy judge ruled that Celsius Network owns most of the cryptocurrency that customers deposit on its online platform, meaning that Celsius customers will be the last to receive repayment from the crypto lender.

A book once slated to be released by Alex Mashinsky, the former CEO and founder of the bankrupt cryptocurrency lender Celsius, has been pulled before it could ever hit the shelves and the publisher of the title is trying to "remove all trace of it online."

[content][quote]Market Story[/quote][title]Dogecoin outperforms top 10 coins, experiences significant 8.1% increase[/title][body]On Tuesday, the cryptocurrency market experienced little change with the exception of Dogecoin which saw a notable 8.1% increase.> TradingView reported that Bitcoin dipped 0.3% to $23,117 while Ether also saw a 0.3% decrease, settling at around $1,583. Binance Coin saw a small 1.1% rise, while Cardano's ADA declined by 0.7%.> Meanwhile, Polygon's MATIC experienced a 1.7% increase following a decrease the previous day.> Both Dogecoin and Shiba Inu, two memecoins with a dog theme, saw growth with Dogecoin rising by 8.1% and Shiba Inu by 0.5%.> In the stock market, Silvergate shares climbed 4.5% to around $13 by 10:00 AM, as reported by Nasdaq data.> Other crypto stocks, including Block led by Jack Dorsey, saw a 2.2% rise to trade at around $82, while MicroStrategy rose 2.5%. Coinbase also saw growth with a 1% increase.[/body][/content]

Court-appointed examiner Shoba Pillay submitted her final report on select aspects of operations at bankrupt cryptocurrency Celsius on Jan. 31. The document was commissioned on Sept. 29 and is 470 pages long, not counting the 31 appendices.

A judge overseeing bankruptcy proceedings for crypto lending firm Celsius Network has denied motions from three users with different claims on assets stuck since July.

The crypto industry's woes continued on Thursday as plunging deposits, layoffs and a lawsuit added to the tumult of 2022, which was dominated by sinking prices and high-profile bankruptcies.

New York Attorney General Letitia James filed a civil lawsuit on 5 January against Alex Mashinsky, alleging the co-founder of bankrupt crypto lender Celsius Network defrauded investors out of billions of dollars of digital currency.

New York Attorney General Letitia James has filed a lawsuit against Alex Mashinsky, alleging the Celsius founder and CEO made numerous “false and misleading statements” which led to investors losing billions. 

In Celsius Network’s recent court filing, the billion-dollar centralized finance (CeFi) platform exposed more than 14,000 pages of customer identity and on-chain transaction data without user consent — a prescient reminder that privacy absent decentralization is no privacy at all.

The bankrupt crypto lender Celsius (CEL) has so far paid out more than $3m in legal fees, with one law firm alone responsible for the vast majority of the expense for just two weeks of work.

In another installment of the legal woes of bankrupt crypto lender Celsius Network, court documents submitted as part of the case have been released for public access along with the personal data of thousands of the company’s customers.

Former Celsius Network executives withdrew $18m in cryptocurrencies in the two months before the company filed for chapter 11, according to documents filed on 5 October to the bankruptcy court.

The latest court filings in the Celsius bankruptcy case have uncovered some controversial transactions made by the defunct crypto lender’s top brass.

The embattled crypto lender Celsius Network Ltd. has lost another top member as co-founder Daniel Leon resigned this week.

S. Daniel Leon, who cofounded Celsius with Alex Mashinsky in 2017, has quit his job as the bankrupt crypto lender’s chief strategy officer, CNBC reported Oct. 4, citing unnamed sources and an internal memo seen by the outlet. Bloomberg later reported receiving confirmation of Leon’s resignation from the company. Leon’s resignation comes one week after Mashinsky’s and is part of an apparently growing trend.

Celsius founder Alex Mashinsky withdrew $10 million from the now-bankrupt cryptocurrency lender just weeks before the company froze customer accounts and collapsed, according to sources cited by The Financial Times.

Alex Mashinsky, the single-most controversial figure in the Celsius Network [CEL] bankruptcy saga, was back in the spotlight. And this time around, the claims that haunt the executive aren’t ones that can be given a miss. The company’s founder reportedly withdrew as much as $10 million from the exchange just weeks before it filed for bankruptcy.