Alex Mashinsky withdrew $10 million of cryptocurrency before customer withdrawals were frozen
Alex Mashinsky withdrew $10 ...
Subscribe to Newsletter

Alex Mashinsky withdrew $10 million of cryptocurrency before customer withdrawals were frozen

4 October 2022
3293
2 min.
2
Alex Mashinsky withdrew $10 million of cryptocurrency before customer withdrawals were frozen

Before the account was frozen

Cryptocurrency (СС) lender Celsius filed for bankruptcy in July amid a collapse in the cryptocurrency market. Its founder and Chief Executive Officer Alex Mashinsky also stepped down this week, having previously withdrawn $10m worth of cryptocurrency before the company froze withdrawals.

The director's withdrawal took place back in May, when the cryptocurrency market began experiencing problems after the Terra USD stabelcoin lost its peg to $1 and collapsed.

Mashinsky thus outpaced Celsius customers when the company froze withdrawals on 12 June. But it is less than a month later in July, the company declared bankruptcy, citing a $1.2bn shortfall in its balance sheet.

The former director himself and his family still hold about $44mln in frozen assets in the Celsius network after his exit.

Most of the withdrawn funds were used to pay state and federal taxes.

It's also worth noting that in early September, Vermont's regulator suggested that the crypto firm was a Ponzi scheme, pointing to a number of state problems related to unregistered securities offerings and fraud conducted by the crypto firm. The documents claim that Celsius was already bankrupt back on 13 May, which is before Alex Mashinsky withdrew his funds.

Regardless of Vermont's lawsuit, Mashinsky could be forced to pay back $10 million. US laws dictate that payments made by a company 90 days before bankruptcy can be "clawed back" for the benefit of its creditors.

The investigation is likely to intensify against Alex Mashinsky, who stepped down as chief executive last Tuesday. He co-founded Celsius in 2017.

Moreover, the market valuation of cryptocurrency lender Celsius rose to $3bn in 2021 after raising $600mln in equity investments. However, the lender's big downside is the fact that it sometimes paid customers more interest than it actually received from the loans.

Persons1 and Companies1 in the news

Founder of Celsius Network
1 place
Celsius Network
1 place
Section:
Rating companies
Instagram
17 Mention
Netflix
14 Mention
X (Twitter)
10 Mention
White House
8 Mention
TikTok
8 Mention
Tesla
8 Mention
Us Weekly
7 Mention

NEW YORK NEWS

News from GlobalNY.biz is the freshest and most relevant information about high-profile events in the region. The task of the resource's news feed is to convey to readers with maximum accuracy and objectivity information about important events in business, politics, economy, healthcare, culture and other spheres of life in New York.
GlobalNY.biz news is a coverage of economic processes taking place in New York, the latest news of public life, incidents and an overview of political events. New York news is information about the activities of small and medium-sized businesses, the work of housing and communal services and utilities, the implementation of significant projects.
The site's journalists describe not only the life of the region, but also talk about the current state of the US economy. Everything you need to know about innovations in the field of industry and agriculture, economy and power is collected in the "News" section at GlobalNY.biz.
New York news quickly informs the reader, shows the real picture and opens up hot topics. Communication with government structures and business enables us to provide our readers with reliable, information-rich material. The main page of the portal contains the key news of New York!
Alena Potapova

Development Director
Population
8169313483
Died this year
53071241
Born this year
130564646