Celebrity green bank fails after massive fraud exposed

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A climate-focused financial company endorsed by prominent celebrities has declared bankruptcy following allegations of a $145 million investor fraud scheme involving its co-founder.

CTN Holdings Inc., formerly known as Aspiration Inc., initially launched as a financial services company centered on sustainability principles. The organization marketed itself as an eco-conscious banking alternative that promised customers their deposits would not support fossil fuel initiatives.

The company attracted high-profile investors including Leonardo DiCaprio, Drake, Robert Downey Jr., Orlando Bloom, Cindy Crawford, and Steve Ballmer. At its peak in 2021, the company reached a valuation of $2.3 billion before transitioning to carbon credit sales in 2023, engaging with major corporations like Microsoft, Meta Platforms, and Ballmer’s Los Angeles Clippers.

Aspiration Partners, a climate-finance startup backed by celebrities like Cindy Crawford, has lined up proposed funding to stay afloat in chapter 11 after federal prosecutors charged a co-founder with fraud https://t.co/xdtMR58DXJ

— WSJ Pro Bankruptcy (@WSJBankruptcy) April 2, 2025

The enterprise was established in 2013 by Andrei Cherny and Joe Sanberg, both with strong Democratic Party connections. Cherny, a former speechwriter for Bill Clinton and Arizona Democratic Party chair, had previously pursued unsuccessful congressional campaigns. Sanberg established himself as a progressive advocate focusing on poverty issues and Democratic Party supporter.

Federal authorities arrested Sanberg on March 3, 2025, charging him with orchestrating a scheme to defraud investors. His alleged accomplice, Ibrahim Ameen AlHusseini, who served on Aspiration’s board and was known for supporting Democratic causes, has admitted to wire fraud for falsifying documents.

“According to the complaint against Sanberg and AlHusseini’s plea agreement, Sanberg obtained $145 million in loans secured by AlHusseini, who Sanberg knew did not have sufficient financial assets to cover those loans if Sanberg defaulted,” the statement read. “Sanberg hid this fact from investors, then defaulted on the loans, which resulted in at least a $145 million in losses.”

Prosecutors revealed that AlHusseini acted under Sanberg’s direction: “At Sanberg’s direction, the defendant made untrue statements. Defendant and Sanberg knew that the falsified statements inflated the value of the assets in defendant’s accounts by tens of millions of dollars.”

Aspiration Inc. was founded by Andrei Cherny, a former Bill Clinton aide who ran for Congress last year, and Joe Sanberg, who considered running for president.

Now, Sanberg could face 20 years in prison for a $150M fraud, prosecutor Joseph McNally said.https://t.co/aQufp13R2Y

— Luke Rosiak (@lukerosiak) March 4, 2025

While Sanberg maintains his innocence, his legal representative stated, “Mr. Sanberg has pleaded not guilty to the charges. We will buckle down and defend him with vigor and zeal.”

CTN filed for Chapter 11 bankruptcy protection on March 30, 2025, carrying approximately $170 million in debt. The Los Angeles Clippers and Kia Forum, both owned by Steve Ballmer, represent the largest unsecured creditors.

The company faces additional scrutiny from federal authorities regarding its environmental impact claims. ProPublica reported in 2021: “Aspiration’s signature marketing claim — about its tree-planting program — turns out to be overblown upon closer examination.”

When Cherny announced in August 2021, “In the past year, the Aspiration community has planted over 35 million trees,” ProPublica revealed this figure included trees yet to be planted.

The outlet also challenged Aspiration’s claim of “5 million passionate members,” noting that company documents defined members as anyone who agreed to terms and conditions, regardless of account status. The actual number of active accounts was 592,148 as of June of that year.