Celsius Leaders Again Accused of Fraud, Fiduciary Breach (1)

Former Celsius Network leaders including co-founder Alex Mashinsky are being sued in federal bankruptcy court for fraud and breach of fiduciary duty as part of an effort to recover funds for former customers.

A complaint filed Wednesday in the US Bankruptcy Court for the Southern District of New York seeks monetary damages and to undo withdrawals that Mashinsky and other leaders made from Celsius before it declared bankruptcy in 2022.

The allegations, brought on behalf of Celsius’ post-bankruptcy company, stem from the early days of Celsius’ existence. Celsius recklessly transferred and invested customer funds without due diligence and artificially inflated ...