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Media: Alex Mashinsky led $ 10 million to blocking Celsius operations


Dec 16, 2022

Media: Alex Mashinsky led $ 10 million to blocking Celsius operations

CEO of the Celsius Network Cryptolending Platform, Alex Mashinsky withdrew $ 10 million a few weeks before freezing client accounts. About this with reference to unnamed sources writes Financial Times.

According to the publication, this happened in the midst of a sales waves in May, caused by the collapse of the Terra ecosystem.

It is assumed that Celsius will provide details of CEO transactions as part of a wider disclosure of financial information.

The representative of Machinsky said that the head of the service and his family members had $ 44 million in Celsius accounts after blocking operations.

The company spokesman said that CEO “withdrew a certain amount, most of which directed taxes”. According to one of the sources, it took $ 8 million. The remaining $ 2 million were associated with the planned property management operation.

The publication recalled that, according to the US legislation, the company’s payments 90 days before its bankruptcy may be returned in favor of all creditors.

Recall, on June 13, the cryptolending platform suspended the withdrawal of funds, What is IEO, and exchange and transfers between accounts.

A month later, Celsius and some affiliated structures have submitted an insolvency application in accordance with Chapter 11 of the US Code of Bankruptcy. Platform obligations exceeded its assets by $ 2.85 billion.

In August, the US Trustees Office announced “numerous issues” to the leadership of the company. Prior to this, FT announced the intervention of Masha in the implementation of the trading strategy of the cryptolending platform, which cost “millions of dollars”.

In September, CEO presented a plan to save Celsius from bankruptcy, according to the media. Later, Machinsky left his post.

Earlier, Forklog said that the company considers the release of wrapped tokens as part of the restructuring plan.

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