Celsius Network Co-Founder Declares Shares Worthless Amid Bankruptcy Chaos

The Price of Worthlessness

In a surprising turn of events, Celsius Network co-founder Daniel Leon has officially declared his entire stockholding in the troubled crypto company as “worthless.” This declaration was made in a filing to the United States Bankruptcy Court, courtesy of the law firm Kirkland & Ellis LLP, who seems to be very busy these days. Leon’s 32,600 common shares have now reached such low esteem that they barely register on the financial Richter scale.

What Does Worthless Mean?

Declaring shares as worthless usually indicates that shareholders have conceded defeat, believing they won’t see any return on their investments. The IRS has a specific definition for this phenomenon, requiring shareholders to demonstrate that their stocks had value before the deduction year followed by an identifiable event that caused their value to plummet faster than a lead balloon.

Background on Celsius Network

Back in July, Celsius Network filed for Chapter 11 bankruptcy, primarily after halting withdrawals due to what they called “extreme market conditions.” No, that’s not a fancy way of saying they bought high and sold low; they just found themselves cornered in the wild world of crypto. The situation was so ground-shaking that it’s likely you felt the tremors, even if you’re more into dog memes than digital assets.

Tax Implications of Worthlessness

According to BnkToTheFuture CEO Simon Dixon, not only does this declaration mean that Celsius Network’s private equity shares are “officially worthless,” but it also hints that Leon might be looking for a silver lining in tax write-offs. Hey, if the shares have turned sour, might as well get some tax relief out of the fiasco!

Celsius’s Financial Footing

As for the company’s financial health, it’s been a rollercoaster ride. While previous estimates indicated it would run out of cash by October, new projections reveal they might still be able to hang on longer than expected—at least until the ghosts of investments past finally collect their dues. Current filings show they possess over $111 million in cash but are expected to dwindle down to $42 million by the end of November. Buckle up, it’s going to be a bumpy ride!