Celsius’ former CEO, Alex Mashinsky, speaking at a 2019 Bitcoin conference in San Francisco. Mashinsky stepped down in September 2022, amid Celsius’ bankruptcy proceedings. He’s being sued for allegedly misleading investors by New York’s AG.
A bankruptcy judge has dashed the dreams of investors hoping to retrieve their crypto funds from Celsius. It turns out, assets placed in the now-defunct crypto exchange’s high interest “Earn Accounts” belong to Celsius, not the account holders, according to a Wednesday ruling from Judge Martin Glenn.
In practice, Judge Glenn’s ruling effectively confirms that stance, and means the company has no immediate obligation to repay about 600,000 investors amid the