Celsius Founder Withdrew $10M Prior Insolvency Filing

• Alex and his family still had $44 million worth of crypto assets locked with Celsius.
• The company filed for bankruptcy and halted withdrawals from users.

Around June, the cryptocurrency lending platform Celsius blocked all withdrawal requests from its users. The next month, with a $1.2 billion hole in its finances, the corporation filed for bankruptcy. New information has surfaced that suggests the creator of the Celsius Network withdrew money in May, before the aforementioned events took shape.

According to a recent Financial Times report:

“Celsius Network founder Alex Mashinsky withdrew $10mn from the crypto lender just weeks before the company froze customer accounts as it spiralled towards bankruptcy, according to people familiar with the matter.”

Celsius to Reveal Mashinsky’s Transactions

The Celsius executive left the company last week. The Financial Times states that the recent withdrawal discoveries “will intensify scrutiny” of Mashinsky and “raise questions” since he allegedly knew the business would not be able to restore consumer funds.

It’s worth mentioning that Celsius plans to reveal the facts of Mashinsky’s transactions in court in the coming days as part of a “broader disclosure” of its financial operations.

Even after the withdrawals, a spokesman for Mashinsky stated that he and his family still had $44 million worth of crypto assets locked with Celsius. An unsecured creditors committee (UCC) in the bankruptcy case reportedly received the information from the CEO.

The representative stated:

“In mid to late May 2022, Mr Mashinsky withdrew a percentage of cryptocurrency in his account, much of which was used to pay state and federal taxes. In the nine months leading up to that withdrawal, he consistently deposited cryptocurrency in amounts that totalled what he withdrew in May.”

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