Report Says, Ex-CEO Celsius Removed $10 million Before Company Halted Customer Accounts

Celsius Network CEO Reportedly Withdrew $10M Weeks Before Freezing Users’ Money

Recently, a number of insiders have reportedly revealed that the CEO of the now bankrupt crypto lender Celsius Network, Alex Mashinsky, withdrew around $10 million from the platform just weeks before it froze its customers’ assets.

The Claims Against Celsius

Mashinsky, who has since stepped down from his position as CEO on September 27th, was reported by Financial Times to have withdrawn the funds sometime in mid to late May before the Celsius platform halted all withdrawals on June 12th.

The freezing of these customers’ assets led to hundreds and thousands of investors unable to access their funds, before the company ultimately filed for a Chapter 11 bankruptcy in July.

Related: FTX CEO Sam Bankman-Fried Considering To Bid For Bankrupt Celsius’ Assets

The revelation of Mashinsky’s $10 million withdrawal has since been scrutinized by the community, who have accused the former CEO of knowing about Celsius’ liquidity issues and took advantage of that knowledge to quickly retrieve his own money before the platform froze.

Claims Denied

However, a spokesperson for Mashinsky has since denied these claims. They explained that the reason Alex Mashinsky had withdrawn the $10 million was in order to pay state and federal taxes.

“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,” they claimed.

Related: FTX CEO Sam Bankman-Fried Considering To Bid For Bankrupt Celsius’ Assets

Aside from that, the spokesperson had also stated that so far, Mashinsky and his family still currently has $44 million worth of Crypto frozen within the Celsius platform, which Mashinsky voluntarily disclosed in Celsius’ bankruptcy proceedings.

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

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