Celsius’ founder withdrew $10 million before the company went bankrupt

It is reported that Mashinsky withdrew part of the funds from his personal account, “much of which was used to pay state and federal taxes”

03.10.2022 - 06:45

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What’s new? Alex Mashinsky, the founder and former CEO of the bankrupt crypto lending platform Celsius Network, withdrew $10 million from the company. This happened weeks before Celsius froze customer withdrawals, the Financial Times reports, citing unnamed sources. Mashinsky, who stepped down as CEO on September 27, withdrew assets in May when the crypto market was rocked by the collapse of the Terra blockchain ecosystem.

The FT’s material

What else does the publication report? Celsius is due to submit details about Mashinsky’s transactions to the court in a few days as part of the company’s broader financial disclosure.

According to a spokesperson for Mashinsky, the entrepreneur told an unsecured creditors committee in the bankruptcy proceedings that he and his family had $44 million in cryptocurrency frozen in Celsius. He said that Mashinsky withdrew part of the assets from the account, “much of which was used to pay state and federal taxes.”

Celsius situation. Celsius filed for bankruptcy a month after the withdrawals were stopped. Celsius’ lawyers argued that most of the user funds on the platform were at the company’s disposal.

In September, Mashinsky unveiled a new plan to restructure Celsius into a custodial platform, later resigning as CEO.

To find out what caused the bankruptcy of Celsius, one of the largest crypto lenders, see GetBlock Magazine’s article.

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