Alex Mashinsky, the former CEO of Celsius, has agreed to forfeit all claims to the bankrupt crypto lender's assets, enabling further distributions to creditors. This agreement, filed in the U.S. Bankruptcy Court for the Southern District of New York, bars Mashinsky and three related entities from receiving any proceeds from the bankruptcy, ensuring that assets can be redirected to other creditors. All claims made by Mashinsky will be withdrawn and disallowed. This move comes as Celsius, which filed for bankruptcy in July 2022 due to liquidity issues, has already distributed over $2.5 billion to about 251,000 creditors. Mashinsky has recently been sentenced to 12 years in federal prison for fraud and manipulation involving Celsius customers' funds. As Celsius continues its recovery process, many eligible creditors are yet to claim their funds.

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