{"id":552028,"date":"2023-02-15T07:07:06","date_gmt":"2023-02-15T04:07:06","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/celsius-creditors-committee-proposes-suing-mashinsky-other-celsius-execs\/"},"modified":"2023-02-15T07:07:06","modified_gmt":"2023-02-15T04:07:06","slug":"celsius-creditors-committee-proposes-suing-mashinsky-other-celsius-execs","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/celsius-creditors-committee-proposes-suing-mashinsky-other-celsius-execs\/","title":{"rendered":"# Celsius creditors committee proposes suing Mashinsky, other Celsius execs"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2e57d9ecd55\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2e57d9ecd55\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/celsius-creditors-committee-proposes-suing-mashinsky-other-celsius-execs\/#%E2%80%9D_Celsius_creditors_committee_proposes_suing_Mashinsky_other_Celsius_execs_%E2%80%9C\" >&#8221; Celsius creditors committee proposes suing Mashinsky, other Celsius execs &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Celsius_creditors_committee_proposes_suing_Mashinsky_other_Celsius_execs_%E2%80%9C\"><\/span>&#8221; Celsius creditors committee proposes suing Mashinsky, other Celsius execs &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-4bbf85c5>The official committee of Celsius creditors is proposing to sue Celsius co-founder Alex Mashinsky and other executives for &#8220;fraud, recklessness, gross mismanagement and self-interested conduct&#8221; that eventually led to the collapse of the crypto lender.<\/p>\n<p>In a proposed <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/cases.stretto.com\/public\/x191\/11749\/PLEADINGS\/1174902142380000000129.pdf\">complaint<\/a> filed in a New York Bankruptcy Court on Feb. 14, attorneys representing the Official Committee of Unsecured Creditors said the move follows six months of investigations into Celsius\u2019 current and former directors, officers and employees.<\/p>\n<p>The committee is made up of seven Celsius account holders and was <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ointed by the U.S. Trustee in July 2022. The committee represents the interest of Celsius&#8217; account holders along with unsecured creditors.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">1-In connection with its investigation, the UCC has identified significant claims and causes of action that Celsius has against Alex Mashinsky and other insiders for breaching their fiduciary obligations, fraudulent transfers, and other causes of action.<\/p>\n<p>\u2014 Celsius Official Committee of Unsecured Creditors (@CelsiusUcc) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/CelsiusUcc\/status\/1625619053015343113?ref_src=twsrc%5Etfw\">February 14, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\u201cThe Committee\u2019s investigation has uncovered significant claims and causes of action based on fraud, recklessness, gross mismanagement, and self-interested conduct by the Debtors\u2019 former directors and officers,\u201d wrote lawyers from White &amp; Case LLC. <\/p>\n<p>The proposed lawsuit \u2014 which seeks damages in an amount to be proven at trial \u2014 aims to bring claims and causes of action against the following Celsius executives, persons and their associated entities: <\/p>\n<ul>\n<li>Alex Mashinsky, co-founder, director and former CEO<\/li>\n<li>Daniel Leon, co-founder, director and former CSO and COO<\/li>\n<li>Hanoch \u201cNuke Goldstein, co-founder and CTO<\/li>\n<li>Harumi Urata-Thompson, former CFO and CIO<\/li>\n<li>Jeremie Beaudry, former <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">General<\/a> Counsel and CCO<\/li>\n<li>Johannes Treutler, former head of Celsius\u2019 trading desk and person in charge of purchasing CEL tokens on behalf of Celsius<\/li>\n<li>Aliza Landes, the former VP of Lending of Celsius and spouse of Daniel Leon<\/li>\n<li>Kristine Mashinsky, the spouse of Alex Mashinsky<\/li>\n<\/ul>\n<p>\u201cMr. Mashinsky, Mr. Leon, Mr. Goldstein, Mr. Beaudry, Ms. Urata-Thompson, and Mr. Treutler breached their fiduciary obligations to Celsius,\u201d the lawyers wrote, adding: <\/p>\n<blockquote><p>\u201cThose parties were aware Celsius was promising its customer&#8217;s interest payments that it could not afford and did nothing to fix the problem.\u201d<\/p><\/blockquote>\n<p>The lawyers have also alleged the executives made \u201cnegligent, reckless (and sometimes self-interested) investments\u201d causing Celsius to lose $1 billion in a single year, while mismanagement led to another quarter-of-a-billion dollar loss \u201cbecause they could not adequately account for the company\u2019s assets and liabilities.\u201d<\/p>\n<p>\u201cAfter that loss, they did not invest in or develop the company\u2019s systems to adequately fix the issue, resulting in further losses,\u201d they alleged. <\/p>\n<p>The motion also alleges the executives directed Celsius to spend \u201chundreds of millions of dollars\u201d on public markets to inflate the price of CEL tokens, while they \u201csecretly sold tens of millions of CEL tokens (or were aware of such sales)\u201d for their own benefit. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/50c3eef7-fd86-49a5-8cce-e9fd1ea91eb9.PNG\"><figcaption style=\"text-align: center;\"><em>Excerpt from the recent motion from Celsius\u2019 official creditors committee. Source: <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/cases.stretto.com\/public\/x191\/11749\/PLEADINGS\/1174902142380000000129.pdf\"><em>Stretto<\/em><\/a><\/figcaption><\/figure>\n<p>\u201cThey sat idly by as Mr. Mashinsky recklessly bet hundreds of millions of dollars on the movement of the cryptocurrency market. They covered up Mr. Mashinsky\u2019s repeated lies about Celsius\u2019 investments and financial condition.\u201d<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Judge denies motions from Celsius users seeking to reclaim assets<\/em><\/strong><\/p>\n<p>\u201cFinally, when it became apparent that Celsius would be required to file for bankruptcy, the Prospective Defendants withdrew assets from the sinking ship [&#8230;] while actively encouraging customers to keep their assets on the Celsius platform,&#8221; the lawyers added.<\/p>\n<p>The Celsius creditors committee said the proposed complaint was just the \u201cfirst of many steps\u201d in its investigation into potential former Celsius executive wrongdoings and the return of assets to victims. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">5-The UCC\u2019s goal, as always, is to maximize recoveries for the benefit of Celsius\u2019 customers and unsecured creditors who were victims of the negligent, reckless, and fraudulent conduct of Mr. Mashinsky and others.<\/p>\n<p>\u2014 Celsius Official Committee of Unsecured Creditors (@CelsiusUcc) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/CelsiusUcc\/status\/1625619061328453635?ref_src=twsrc%5Etfw\">February 14, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>A hearing with respect to the proposed complaint will be held on March 8, 2023.<\/p>\n<p>Cointelegraph contacted Celsius for comment but did not receive an im<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>te response. <\/p>\n<p><template data-name=\"subscription_form\" data-type=\"law_decoded\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. 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In a proposed complaint filed in a New York&#8230;<\/p>\n","protected":false},"author":1,"featured_media":552029,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/0751d9a6-a069-48a8-b985-fa01663a4f60.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[136596,117,71433,70934],"class_list":["post-552028","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-celsius","tag-business","tag-court","tag-regulation"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/552028","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=552028"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/552028\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/552029"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=552028"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=552028"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=552028"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}