Celsius co-founder says his capital is 'worthless' in court
It is unclear whether Leon's court filing will affect the value of shares still outstanding.
New
A Celsius Network co-founder has filed a lawsuit to declare his entire stake in the troubled crypto firm as “worthless.”
In a Monday filing with the U.S. bankruptcy court, law firm Kirkland & Ellis LLP filed a statement on behalf of Celsius co-founder Daniel Leon confirming his status as a significant shareholder and declaring that its 32,600 common shares are now considered worthless.
#CelsiusNetwork #CelsiusBankruptcy Here's a news story — a "no value" statement has just been filed by Daniel Leon, one co-founders. The statement was filed by K&E. https://t.co/OHldovdhBZ
— David Adler (@DavidJAdler1991) September 5, 2022A declaration that a particular stock or common stock is "worthless" usually occurs when a company's shareholders believe they will receive no further distributions for their holdings.
According to the IRS, a stock is worthless when a taxpayer can prove that the stock had value at the end of the year preceding the deduction year and an identifiable event caused a loss to the during the deduction year.
The struggling crypto lender filed for Chapter 11 bankruptcy in July, a month after halting withdrawals due to “extreme market conditions”.
BnkToTheFuture CEO Simon Dixon suggested in a Monday Twitter post that the statement means Celsius Network's private equity shares are now "officially worthless" and the co-founder wants to use them as a tax deduction.
I guess this is the official update...
It is unclear whether Leon's court filing will affect the value of shares still outstanding.
New
A Celsius Network co-founder has filed a lawsuit to declare his entire stake in the troubled crypto firm as “worthless.”
In a Monday filing with the U.S. bankruptcy court, law firm Kirkland & Ellis LLP filed a statement on behalf of Celsius co-founder Daniel Leon confirming his status as a significant shareholder and declaring that its 32,600 common shares are now considered worthless.
#CelsiusNetwork #CelsiusBankruptcy Here's a news story — a "no value" statement has just been filed by Daniel Leon, one co-founders. The statement was filed by K&E. https://t.co/OHldovdhBZ
— David Adler (@DavidJAdler1991) September 5, 2022A declaration that a particular stock or common stock is "worthless" usually occurs when a company's shareholders believe they will receive no further distributions for their holdings.
According to the IRS, a stock is worthless when a taxpayer can prove that the stock had value at the end of the year preceding the deduction year and an identifiable event caused a loss to the during the deduction year.
The struggling crypto lender filed for Chapter 11 bankruptcy in July, a month after halting withdrawals due to “extreme market conditions”.
BnkToTheFuture CEO Simon Dixon suggested in a Monday Twitter post that the statement means Celsius Network's private equity shares are now "officially worthless" and the co-founder wants to use them as a tax deduction.
I guess this is the official update...
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