According to the Financial Times, Celsius your network founder and former CEO Alex Mashinsky withdrew $10 million before the company froze its customers’ withdrawals and ultimately declared bankruptcy.
Celsius CEO Mashinsky Withdrawn $10 Million Before Company’s Bankruptcy
Citing people familiar with the matter, the FT reported that Mashinsky withdrew $10 million in May. your customers cryptocurrency Withdrawals were frozen on June 12 due to the bear market and concerns over the crypto lender’s financial stability.
A spokesperson told the FT that Mashinksy and his family had $44 million worth of crypto assets frozen at the crypto lender following the withdrawal. Mashinksy resigned as CEO on September 27, 2022.
One of the company spokespersons made the following statements on the subject:
“From mid to late May 2022, Mr. Mashinsky withdrew some of the cryptocurrencies from his account, most of which was used to pay state and federal taxes. In the nine months prior to this withdrawal, he regularly deposited the total amount of cryptocurrencies he had withdrawn in May.”
Mashinsky founded Celsius in 2017, and the firm had a valuation of $3 billion by the end of 2021. The firm filed for Chapter 11 bankruptcy on July 18 and has been involved in legal proceedings ever since.
The Vermont Department of Financial Regulation even claimed that the firm was running a Ponzi-like scheme and that client funds were not secure despite the firm’s assurances to users.
*Not investment advice.
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