Celebrity Backed Climate Startup Goes Bankrupt With Massive Debt After Cofounder Arrested on Fraud Charges

A climate tech company once backed by big-name investors and trusted by major corporations has filed for bankruptcy after its co-founder was charged with defrauding investors. The fallout threatens millions in claims and reveals deeper issues plaguing green startups.

Key Facts:

CTN Holdings, formerly Aspiration Partners Inc., filed for Chapter 11 bankruptcy protection.
The company owes roughly $170 million and aims to sell assets quickly to repay creditors.
Co-founder Joseph Sanberg was charged with defrauding investor funds of at least $145 million.
Sanberg’s alleged fraud did not involve the company directly, according to court filings.
High-profile creditors include Steven Ballmer’s Los Angeles Clippers and Kia Forum, owed around $40 million.

The Rest of The Story:

Once hailed as a promising climate startup, Aspiration Partners—now CTN Holdings—has collapsed under financial strain and scandal.

The company helped large firms like Microsoft and Meta buy ~~fake~~ carbon credits to offset emissions.

But in March, co-founder Joseph Sanberg was charged with a scheme to defraud investors, sending the company into a tailspin.

CTN filed for bankruptcy soon after, seeking court approval to borrow $4 million to stay afloat during the process.

The goal is to auction off its assets within 45 days.

Although current leadership insists Sanberg acted alone and is no longer involved, the company says his arrest scared off potential investors, making the situation worse.

With about $170 million in debt and limited buyer interest, the restructuring officer says the firm’s assets may not yield quick returns.

One of the biggest creditors is Steven Ballmer, with his Clippers and Kia Forum holding large claims tied to carbon credit agreements.

Leonardo DiCaprio-backed climate firm just went bankrupt.

Via Bloomberg:

“Aspiration Partners Inc., which boasted a roster of celebrity backers and arranged carbon credits for Meta Platforms Inc., Microsoft Corp. and other large companies, filed bankruptcy weeks after its… pic.twitter.com/IAH5sfLCsp

— Steve Guest (@SteveGuest) April 1, 2025

Commentary:

This story fits a familiar pattern in the world of green startups: big promises, celebrity endorsements, massive investment—followed by collapse.

Companies like Aspiration get flooded with cash from powerful backers under the banner of saving the planet.

Yet within a few years, the dream is gone, the debt piles up, and only a few insiders walk away with millions.

What makes it worse is the lack of consistent scrutiny.

If this type of financial misconduct had emerged in an oil or coal startup, media outlets would be running daily coverage.

Protesters would be in the streets.

But when it’s a climate-focused firm tied to elites and major corporations, the story gets a softer touch—or no coverage at all.

The mainstream press barely acknowledges how often this happens in the so-called green economy.

Startups overpromise on carbon offsets, claim to revolutionize the climate tech world, and secure major clients like Microsoft.

Yet many of these ventures rely on vague or unproven methods to measure impact, making their actual value questionable from the start.

Investors—many of whom are politically connected—lose money, but rarely face serious questions.

Meanwhile, average Americans are told to sacrifice more for the environment while the green elite reap short-term profits.

When the house of cards collapses, companies declare bankruptcy, and everyone moves on.

It’s time to ask harder questions about where this money is going and who benefits.

Environmental goals shouldn’t be a cover for reckless spending, weak oversight, and get-rich-quick schemes dressed up in green.

The Bottom Line:

Aspiration’s collapse is yet another case of a hyped climate startup crashing under financial and legal pressure.

Its bankruptcy leaves behind massive debt and raises serious concerns about how green ventures are funded and managed.

Until there’s accountability in this space, expect more flash-in-the-pan firms—and more silent losses.