The official committee of Celsius creditors is proposing to sue Celsius co-founder Alex Mashinsky and other executives for “fraud, recklessness, gross mismanagement and self-interested conduct” that eventually led to the collapse of the crypto lender.
In a proposed complaint 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’ current and former directors, officers and employees.
The committee is made up of seven Celsius account holders and was appointed by the U.S. Trustee in July 2022. The committee represents the interest of Celsius’ account holders along with unsecured creditors.
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.
— Celsius Official Committee of Unsecured Creditors (@CelsiusUcc) February 14, 2023
“The Committee’s investigation has uncovered significant claims and causes of action based on fraud, recklessness, gross mismanagement, and self-interested conduct by the Debtors’ former directors and officers,” wrote lawyers from White & Case LLC.
The proposed lawsuit — which seeks damages in an amount to be proven at trial — aims to bring claims and causes of action against the following Celsius executives, persons and their associated entities:
- Alex Mashinsky, co-founder, director and former CEO
- Daniel Leon, co-founder, director and former CSO and COO
- Hanoch “Nuke Goldstein, co-founder and CTO
- Harumi Urata-Thompson, former CFO and CIO
- Jeremie Beaudry, former General Counsel and CCO
- Johannes Treutler, former head of Celsius’ trading desk and person in charge of purchasing CEL tokens on behalf of Celsius
- Aliza Landes, the former VP of Lending of Celsius and spouse of Daniel Leon
- Kristine Mashinsky, the spouse of Alex Mashinsky
“Mr. Mashinsky, Mr. Leon, Mr. Goldstein, Mr. Beaudry, Ms. Urata-Thompson, and Mr. Treutler breached their fiduciary obligations to Celsius,” the lawyers wrote, adding:
“Those parties were aware Celsius was promising its customer’s interest payments that it could not afford and did nothing to fix the problem.”
The lawyers have also alleged the executives made “negligent, reckless (and sometimes self-interested) investments” causing Celsius to lose $1 billion in a single…
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