The co-founder of the embattled Celsius network, Daniel Leon, has declared the entirety of his equity stake in the embattled crypto company worthless.
His position was made known in a document to the United States Bankruptcy Court. Law firm Kirkland & Ellis LLP filed a declaration on behalf of Daniel Leon. This was to confirm his status as a substantial shareholder and to declare that his 32,600 common shares are now considered worthless.
The embattled crypto lender filed for Chapter 11 bankruptcy in July, a month after halting withdrawals due to “extreme market conditions.”
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BnkToTheFuture CEO Simon Dixon suggested in a Monday Twitter post that the declaration means that Celsius Network private equity shares are now “officially worthless” and that the co-founder wants to use them as a tax write-off.
The latest forecast, dated Aug. 31 and filed to the United States Bankruptcy Court on Tuesday. has the firm sitting on just over $111 million in cash currently, forecasting $42 million cash left by the end of November.