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Cryptoknowmics 2022-10-03 06:53:53

Celsius Network Founder Withdrew $10mn Ahead of Bankruptcy

According to reports, Alex Mashinsky, the former CEO and creator of Celsius Network, took $10 million before the business stopped allowing customer withdrawals and eventually filed for bankruptcy. The Financial Times report, citing sources familiar with the situation, stated that Mashinsky withdrew the $10 million in May. Due to consumer worries about the cryptocurrency bear market and the financial health of the crypto lender, withdrawals were blocked on June 12. As reported by FT, Celsius froze $44 million worth of cryptocurrency assets for Mashinksy and his family after his resignation. Alex Mashinsky quit as CEO on September 27, 2022. The majority of the cryptocurrency that Mashinsky took from his account between mid and late-May 2022 was used to pay state and federal taxes. The Celsius Network According to the sources, Alex Mashinsky continuously deposited crypto in amounts equal to what he had withdrawn in May in the nine months that followed. He co-founded Celsius in 2017; by the end of 2021, the company had a $3 billion valuation. On July 18, the company filed for Chapter 11 bankruptcy; since then, it has been involved in legal disputes. Even though the company assured consumers that their money was secure, the Vermont Department of Financial Regulation said that the corporation was engaged in a Ponzi-like scheme that put client assets at risk. Bankruptcy After Terminating DeFi Loans In the Southern District of New Yor...

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