Celsius’ Ex-CEO Alex Mashinsky Withdrew $10M Before Company Froze Customer Accounts: FT

A report by the Financial Times has it that Alex Mashinsky, the founder and former CEO of Celsius Network, withdrew $10 million from the bankrupt crypto lender weeks before the lender halted customer withdrawals in June.

Mashinsky withdrew the cryptocurrency in May and Celsius should submit details about his transactions to the court in a few days, according to the report. Mashinsky resigned as CEO Sept. 27.

Following the withdrawal, Mashinksy and his family had $44 million in crypto frozen, a spokesperson told the Financial Times.

The spokesperson also said that Mashinsky “withdrew a percentage of cryptocurrency in his account, much of which was used to pay state and federal taxes.”

Due to “extreme market conditions,” Celsius froze withdrawals, swaps and transfers on its platform in June. In July, the crypto lender filed for chapter 11 bankruptcy protection one month later in U.S. Bankruptcy Court for the Southern District of New York.

Celsius has a $1.2 billion hole in its balance sheet, holding $4.3 billion of assets and $5.5 billion of liabilities.

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