Celsius co-founder declares his equity is ‘worthless’ in court

cointelegraph.com:

A Celsius Network co-founder has moved in court to declare the entirety of his equity stake in the embattled crypto company as “worthless." 

In a Sept. 5 document to the United States Bankruptcy Court, law firm Kirkland & Ellis LLP filed a declaration on behalf of Celsius Co-Founder Daniel Leon, confirming his status as a substantial shareholder, and declaring that his 32,600 common shares are now considered worthless. 

#CelsiusNetwork #CelsiusBankruptcy Here’s a new one — a declaration of “wothlessness” was just filed by Daniel Leon , one of the cofounders. The Declaration was filed by K&E. https://t.co/OHldovdhBZ

A declaration that a particular stock or common share is “worthless” generally occurs when shareholders in a company think they will not receive any further distribution for their holdings.

According to the IRS, a stock is worthless when a taxpayer can show the security had value at the end of the year preceding the deduction year and that an identifiable event caused a loss in the deduction year.

The embattled crypto lender filed for Chapter 11 bankruptcy in July, a month after halting withdrawals due to “extreme market conditions."

BnkToTheFuture CEO Simon Dixon suggested in a Sept. 5 Twitter post that the declaration means that Celsius Network private equity shares are now "officially worthless" and that the co-founder wants to use them as a tax write-off. 

I guess this is the official update that @CelsiusNetwork shares are officially worthless & the co-founder wants to use them as a tax write-off. At least shareholders understood the risks though it’s still painful for the community that invested in them. https://t.co/W9Q2GuCU9H

Celsius raised two rounds of private equity funds from smaller investors via