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Foresight News reported that Alex Mashinsky, founder and former CEO of Celsius, and his affiliated entities have officially waived all claims against Celsius's bankruptcy assets and will no longer participate in any distribution of the bankruptcy estate, according to Decrypt. The agreement was submitted to the United States Bankruptcy Court for the Southern District of New York on Monday of this week. According to the agreement, all claims submitted or registered by Mashinsky and its three affiliated companies (AM Ventures Holdings Inc., Koala1 LLC, and Koala3 LLC) will be revoked and deemed invalid, and will not receive any compensation under bankruptcy proceedings. This decision will release some assets that were originally frozen due to its claims and use them to repay more creditors. Mashinsky was previously sentenced to 12 years in federal prison in May 2025 for defrauding Celsius customers and manipulating the price of the platform token CEL. He pleaded guilty in December 2024 and was charged with commodity fraud and securities fraud. Celsius filed for bankruptcy protection in July 2022 and reached two settlement agreements in 2023 to transform into a new entity focused on creditor repayment. As of August 2024, the platform has disbursed over $2.5 billion to approximately 251000 creditors in 165 countries worldwide, covering approximately 93% of the total claims amount.