Former Celsius CEO Alex Mashinsky and other top executives are facing a motion to recover millions filed by The Official Committee of Unsecured Creditors for Celsius.

The motion accuses the named parties of negligent and self-interested operations, market manipulation regarding CEL, and covering up for Mashinsky’s reckless bets.

The committee’s filing follows a court-appointed independent examiner’s report that exposed mismanagement of customer funds and Ponzi-like operations at the bankrupt crypto lender.

Celsius has proposed selling its crypto business to NovaWulf Digital Management, offering smaller creditors around 70% of their funds back and tokenized shares to larger creditors.

The case raises questions about crypto executives’ responsibility, legal and moral obligations, and regulation in the industry.