Celsius Co-Founder Says His Equity is “Worthless”

Dejan Cvetnarevic
Dejan Cvetnarevic

Updated · Sep 07, 2022

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A Celsius Network co-founder, Daniel Leon, has declared the entirety of his equity stake in the crypto company as “worthless.”

Crisis Continues

On Monday, the law firm Kirkland & Ellis LLP filed a declaration to the United States Bankruptcy Court on behalf of Leon. The document declares that his 32,600 common shares are now considered to have no value.

This generally occurs when shareholders believe they will not receive further distribution for their holdings.

The crypto lender Celsius first halted withdrawals in June, citing extreme market conditions as the main reason. In July, the company filed for Chapter 11 bankruptcy.

In a Twitter post, BnkToTheFuture CEO, Simon Dixon, said that the declaration means that the company’s private equity shares are now “officially worthless” and that Leon plans to use them as a tax write-off.

Celsius has raised two rounds of private equity funds from smaller investors through BnkToTheFuture. The online investment platform previously proposed three ways to save Celsius but the company’s CEO, Alex Mashinsky, refused to expose the books to investors.

The crypto lender first announced it expects to run out of funds by October. However, a new forecast shows Celsius has managed to create some more breathing room.

The latest forecast, dated August 31st, shows that the company currently sits on $111 million in cash and predicts it will have $42 million left by the end of November.

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Dejan Cvetnarevic

Dejan Cvetnarevic

Dejan is a techie at heart who always dreamed of turning his fascination with gaming into a career. He finds working for TechJury a perfect opportunity to express his views of all kinds of different software. Being an avid reader, particularly of fantasy and sci-fi, Dejan pursued a degree in English Language and Literature. When not at his computer, he’s watching sports or playing tabletop games.

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