Celsius: A look into the crypto lender’s ex-CEO may solve the bankruptcy puzzle
Alex Mashinsky, the single-most controversial figure in the Celsius Network [CEL] bankruptcy saga, was back in the spotlight. And this time around, the claims that haunt the executive aren’t ones that can be given a miss. The company’s founder reportedly withdrew as much as $10 million from the exchange just weeks before it filed for bankruptcy.
According to an article published by The Financial Times, individuals around the CEO shed light on the issue. Apparently, Mashinsky withdrew $2 million worth of Celsius’ native token CEL along with $8 million.
The timing of the transaction in question doesn’t help Mashinsky as he was and has been subject to increased scrutiny lately. Furthermore, the revelation also raised an important question. Did Celsius know about their poor financial health and still choose to provide false assurances to their clients?
To add fuel to the aforementioned claim, Celsius, in a 7 June blog post, explicitly assured customers that all was well with the network. Additionally, the company stated that it “has the reserves (and more than enough ETH) to meet obligations, as dictated by our comprehensive liquidity risk management framework.”
Furthermore, Celsius encouraged clients to stay on the exchange. The network also informed users it had enough reserves to cover any liabilities that would arise due to the Terra collapse. And all this, barely a week before suspending withdrawals on the platform on 12 June.
A spokesperson for Celsius explained the reason for the suspicious withdrawals. The spokesperson stated that the $8 million were to be used for paying state and federal taxes. Additionally, the withdrawal of the $2 million worth of CEL was for Mashinsky’s estate planning.
“In the nine months leading
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