Celsius CEO and other executives pulled out as much as $23 million before filing for bankruptcy
Two former executives at crypto lending firm Celsius withdrew up to $23 million (approximately Rs 190) worth of crypto between May and June of this year, before the company froze the withdrawals. client’s money and filed for bankruptcy. The information is detailed in the Financial Matters Report filed late Wednesday and goes on to show that former CEO Alex Mashinsky and former CSO Daniel Leon have withdrawn Bitcoin, Ether, USDC and CEL mainly from custodial accounts. The document also details the transfers made by current CTO Nuke Goldstein during that time.
Court documents, first report by CoinDesk confirmed that Mashinsky withdrew $10 million (approximately Rs 80. An earlier report also showed CTO Nick Goldstein withdrew $13 million (approximately Rs. 110) and then $7.8 million. (approximately 65 crore) in CEL, but transactions placed in different related institutions indicate that he transferred his holdings to different accounts in Celsius.
Other executives did not make significant withdrawals during that time period, the document shows.
It is worth noting that Alex Mashinsky Resign as CEO last week, followed by Daniel Leon’s resignation earlier this week. Goldstein has been at the company as a co-founder and CTO since 2017, according to LinkedIn Profile.
Before freezing customer withdrawals and filing for bankruptcy in the summer, Celsius was one of the largest crypto lending platforms, with nearly $25 billion (about 2,05,900 crore) in assets. management in October 2021. As of the end of last year, the company has reached a valuation of $3 billion (approximately Rs 24,700).
Celsius executives’ withdrawal doesn’t look good from the point of view of users who have suffered heavy losses, given how many users were unable to withdraw their funds during the liquidity crisis just a few months before. Celsius halted all withdrawals indefinitely in June and filed for bankruptcy the following month, leaving users with nothing. C owes around $4.7 billion (about Rs 38,700.) to users but no money to pay for them.
