Celsius to Make Third Distribution to Creditors, Totaling $220.6 Million

BlockBeats News, August 20 — According to disclosures from Cointelegraph, Celsius will begin its third round of distributions to eligible creditors, totaling $220.6 million. This will bring the cumulative recovery rate to approximately 64.9% of the claim value.

As previously reported by BlockBeats, on May 9, Celsius founder Alex Mashinsky was sentenced to 12 years in prison for crypto-related fraud, with two charges resulting in sentences of 120 months and 144 months respectively (to be served concurrently for a total of 144 months). Alex Mashinsky agreed to forfeit $48 million and multiple properties. Prior to Celsius’s collapse in 2022, Alex Mashinsky repeatedly lied to investors about the safety of customer deposits. Prosecutors pointed out that he falsely claimed the platform was regulated, insisted that no unsecured loans were issued (when in fact they were), and manipulated the price of the CEL token for personal gain—earning over $48 million in illicit profits from CEL-related activities alone.