Celsius Network Ex-CEO Mashinsky Withdrew $10 Million Before The Bankruptcy

Alex Mashinsky – founder of Celsius Network – withdrew $10m just weeks before freezing all customers’ accounts, heading to the firm’s bankruptcy.

The mass withdrawal of large numbers from this firm as the turbulence in the market together with the Celsius Network’s financial status has spooked these customers.

This firm froze all withdrawals from June, and hundreds of customer could able to access their funds. One month later, Celsius Network filed for bankruptcy with $1.2 million on its balance sheet.

Last year, the firm reached the peak of $25 billion worth after the promotion of high-rate interest up to 18% compared with other cryptocurrencies.

The withdrawal from the head of Celsius Network revealed that he knew this company could be unable to refund all customers’ assets. All Mashinsky’s transactions will be scrutiny and submitted to the court for official disclosure regarding the financial health of this company.

“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,” the spokesperson said.

“He continues to be committed to working with and uniting the community around a recovery plan that will maximise coin and liquidity for all,” they added.

Despite the peak of trading volume in 2021, Celsius Network struggled with serious financial problems when the firm could not able to pay all customers’ interests generated from the lending.

Alex Mashinsky stepped down on Tuesday. He apologized to customers in the resignation letter, saying that “very sorry about the difficult financial circumstances members of our community are facing”.

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Ken

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