Founder and ex-CEO of Celsius, Alex Mashinsky, has been accused of withdrawing $10 million from the crypto lender before filing for bankruptcy. According to Financial Times, Mashinsky withdrew funds between mid to late May this year and then on June 12, Celsius froze all account withdrawals and declared bankruptcy.
Celsius used to be one of the popular lending platforms in the crypto space with 1.7 million users and $25 billion assets under management; however, due to the impact of Terra’s crash and the market downturn, the platform lost $2.85 billion. That forced Celsius to halt customer withdrawals and file for Chapter 11 bankruptcy just a month later.
In response, a spokesman for Celsius said Mashinsky withdrew the funds to pay state taxes. In the 9 months leading up to the withdrawal, the founder continuously deposited crypto on the platform with a total value equal to the amount he withdrew. It was reported that Mashinsky and his family still have $44 million in crypto frozen on the platform.
Meanwhile, sources from Financial Times have revealed that $8 million worth of assets withdrawn were used to pay income taxes and the remaining 2 million was made up of Celsius’ native token CEL. This person added that the withdrawal was pre-planned and related to the founder’s real estate plan.
Questions about this $10 million will be answered in the next few days when Celsius presents the transactions in court. Mashinsky may be forced to pay back this $10 million because within 90 days before filing for bankruptcy, the company’s payments can be returned to the benefit of creditors.
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