Celsius cases closed, Tron founder dismisses Bloomberg suit, AI16Z

Celsius’ criminal cases were officially closed on Thursday, marking the end of court proceedings for the 2022 collapse that left users with about $5 billion in losses, while Tron founder Justin Sun voluntarily dismissed his lawsuit against Bloomberg and the AI16Z DAO case moved toward a bench trial in New York [1].

Celsius case closure

The U.S. District Court for the Southern District of New York recorded the closure of criminal cases against former Celsius CEO Alex Mashinsky and former CRO Roni Cohen‑Pavon on Thursday. Mashinsky, who pleaded guilty, received a 12‑year prison term for fraud and price manipulation, while Cohen‑Pavon was credited with “substantial assistance” and received a time‑served sentence [1]. The closure ends the legal chapter of a collapse that left creditors with a combined loss of roughly $5 billion, a figure that underscores the scale of the fallout compared with other 2022 crypto failures.

Tron founder’s lawsuit dismissed

On Monday, Tron founder Justin Sun moved to dismiss his August 2025 lawsuit against Bloomberg, which alleged that the outlet disclosed “proprietary financial information” about his crypto holdings, potentially exposing him to security threats [1]. The dismissal was filed without prejudice, allowing Sun to refile if desired, and the case was terminated the following day after months of inactivity on the docket [1]. The complaint originated from Bloomberg’s February 2025 outreach for its Billionaires Index, where it published estimates of Sun’s crypto assets—a claim Sun argued could lead to kidnapping and phishing risks.

AI16Z DAO pre‑trial developments

A class‑action suit filed in April against Eliza Labs, its founder Shaw Walters, Sebastian Quinn‑Watson, and the AI16Z DAO proceeded to a pre‑trial conference on Tuesday in New York. The lawsuit alleges market manipulation and deceptive use of the Andreessen Horowitz brand, which allegedly helped the AI16Z token reach a $2.6 billion market cap in January 2025 before large holders began liquidating [1]. Judge Jed Rakoff questioned why Walters had not been served, and defense counsel noted that bringing Quinn‑Watson from Australia to court could take months. All defendants have consented to a bench trial, projected to start roughly five months after the judge rules on a motion to dismiss [1].

What to watch

• Celsius forfeiture payments – Mashinsky was ordered to forfeit $48 million; monitoring any restitution to creditors could signal recovery progress.
• Future Bloomberg disclosures – Any renewed legal action by Sun or further Bloomberg reporting on crypto holdings may affect market sentiment toward high‑profile founders.
• AI16Z DAO trial timeline – The bench trial’s scheduled start date and any rulings on the motion to dismiss will shape expectations for the token’s future valuation and potential regulatory scrutiny.

These developments close a major chapter for Celsius victims, while the dismissal of Sun’s suit and the looming AI16Z DAO trial illustrate ongoing legal battles that could influence investor confidence and regulatory approaches in the crypto ecosystem.