{"id":35348,"date":"2022-09-07T03:37:26","date_gmt":"2022-09-07T07:37:26","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=35348"},"modified":"2022-09-07T03:37:29","modified_gmt":"2022-09-07T07:37:29","slug":"celsius-co-founder-files-declaration-of-worthlessness-in-court","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/celsius-co-founder-files-declaration-of-worthlessness-in-court\/","title":{"rendered":"Celsius co-founder files declaration of \u2018worthlessness\u2019 in court"},"content":{"rendered":"\n
Daniel Leon co-founder of troubled crypto company Celsius has asked the court to deem “worthless” the entirety of his stock stake in the Celsius Network<\/a>.<\/h5>\n\n\n\n
\"Celsius
Celsius co-founder files declaration of \u2018worthlessness\u2019 in court<\/figcaption><\/figure>\n\n\n\n

The legal firm Kirkland & Ellis LLP filed a declaration on behalf of Celsius Co-Founder Daniel Leon in a document to the United States Bankruptcy Court on September 5, confirming his status as a substantial stakeholder\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> and stating that his 32,600 common shares are currently regarded as worthless.<\/p>\n\n\n\n

\n

#CelsiusNetwork<\/use><\/svg><\/span><\/a> #CelsiusBankruptcy<\/use><\/svg><\/span><\/a> Here\u2019s a new one \u2014 a declaration of \u201cwothlessness\u201d was just filed by Daniel Leon , one of the cofounders. The Declaration was filed by K&E. https:\/\/t.co\/OHldovdhBZ<\/use><\/svg><\/span><\/a><\/p>— David Adler (@DavidJAdler1991) September 5, 2022<\/use><\/svg><\/span><\/a><\/blockquote>

A stock or common share is generally declared to be “worthless” when shareholders believe they won't get any future payout for their ownership.<\/p>\n\n\n\n

If a taxpayer can demonstrate that security had value at the end of the year prior to the deduction year and that an identifiable event resulted in a loss in the deduction year, the IRS deems the security to be worthless.<\/p>\n\n\n\n

The troubled cryptocurrency lender stopped accepting withdrawals in June owing to “extreme market conditions,” and one month later filed for Chapter 11 bankruptcy<\/a>.”<\/p>\n\n\n\n

The co-founder of Celsius Network wants to deduct his shares as a tax deduction, according to BnkToTheFuture CEO Simon Dixon, who wrote about the declaration on Twitter on September 5.<\/p>\n\n\n\n

\n

I guess this is the official update that @CelsiusNetwork<\/use><\/svg><\/span><\/a> shares are officially worthless & the co-founder wants to use them as a tax write-off. At least shareholders understood the risks though it\u2019s still painful for the community that invested in them. https:\/\/t.co\/W9Q2GuCU9H<\/use><\/svg><\/span><\/a><\/p>— Simon Dixon (@SimonDixonTwitt) September 6, 2022<\/use><\/svg><\/span><\/a><\/blockquote>

Through BnkToTheFuture, Celsius raised two rounds of private equity funding from smaller investors.<\/p>\n\n\n\n

The funding runway for Celsius Network looks to have expanded in the meantime. A fresh forecast seems to indicate that the corporation has managed to gain extra breathing room, even though a filing from last month predicted the company would run out of money by October.<\/p>\n\n\n\n

According to the most recent prediction, dated August 31 and submitted to the United States Bankruptcy Court<\/a> on September 6, the company now has little over $111 million in cash and expects to have $42 million by the end of November.<\/p>\n","protected":false},"excerpt":{"rendered":"

Daniel Leon co-founder of troubled crypto company Celsius has asked the court to deem “worthless” the entirety of his stock stake in the Celsius Network. The legal firm Kirkland & Ellis LLP filed a declaration on behalf of Celsius Co-Founder Daniel Leon in a document to the United States Bankruptcy Court on September 5, confirming […]<\/p>\n","protected":false},"author":12,"featured_media":35350,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[896,4461,11276],"class_list":["post-35348","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-celsius","tag-celsius-network","tag-worthlessness"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/09\/image-36.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/35348","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=35348"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/35348\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/35350"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=35348"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=35348"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=35348"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}