Bankrupt crypto lending platform Celsius His appointed officials are taking legal action against company founder Alex Mashinsky and other former executives.
Former CEO Mashinsky, co-founder Daniel Leon and lower-level executives deliberately were at the company, according to documents that appeared in court this week. “Negligent, reckless and manipulative” litigated.
According to the prosecution, Celsius officials deliberately manipulated the price of the CEL token upwards to attract more investors to the platform. When things started to go bad, Mashinsky transferred billions of dollars of corporate assets to his own decentralized finance platform, KeyFi.
Another important detail about Mashinsky emerged in the documents. Celsius’ founder made a major transfer to his own crypto wallet in May 2022 before filing for bankruptcy.
The lawyer team of Celsius creditors based on these reasons presented to the court that Mashinsky and his team should cover the losses of the investors.
1-In connection with its investigation, the UCC has identified significant claims and causes of action that Celsius has against Alex Mashinsky and other insiders for breaching their fiduciary obligations, fraudulent transfers, and other causes of action.
— Celsius Official Committee of Unsecured Creditors (@CelsiusUcc) February 14, 2023
Celsius, which borrows from crypto investors and provides loans to those in need, went bankrupt last July. Founder Alex Mashinsky left his post in September, claiming that the company would be restructured.
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