Celsius Reorganization Not Affected by $4.7B Settlement With U.S., Bankrupt Crypto Lender Says

By coindesk.com July 14, 2023 In Uncategorized

That includes customer recoveries, the company said Thursday.

Updated Jul 13, 2023 at 9:44 p.m. UTC


Alex Mashinsky, co-founder and former CEO of insolvent crypto lender Celsius, was arrested in New York on Thursday following an investigation into the company’s collapse, according to the U.S. Department of Justice (DOJ). “The Hash” breaks down the latest developments, as the U.S. Department of Justice has accused Mashinsky of orchestrating a “years long scheme to mislead customers.”

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Bankrupt crypto lender Celsius Network said its $4.7 billion settlement with the U.S. over fraud allegations won’t affect its reorganization or the amount it recovers for customers.

The company “continues to pursue a successful Chapter 11 Plan,” Celsius said in a statement attached to a Thursday court filing. “Celsius’ Special Committee and senior leadership remain committed to ongoing cooperation with regulators and government bodies as the Company remains focused on maximizing value for stakeholders.”

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