Celsius Founder Withdraws $10 million Before Bankruptcy Filing
Alex Mashinsky, the founder, and former CEO of Celsius Network reportedly took 10 million USD from the crypto lending platform only weeks before it froze client assets and filed bankruptcy. Celsius was a prominent crypto-lending platform with 1.7 million clients and 25 billion USD in assets under management, however the company's financial sheet was left with a 2.85 billion USD hole due to the current weak crypto market circumstances. As a result, Celsius paused customer withdrawals in June before declaring for Chapter 11 bankruptcy in July, with Mashinksy aiming to reorganize and relaunch the firm around crypto custody services.
The withdrawal raises the question of whether Mashinsky was aware that the corporation would be blocking client money and withdrawals ahead of time. A spokeswoman for Celsius, on the other hand, informed FT that the founder withdrew bitcoin at the time to pay state and federal taxes. Approximately 8 million USD in assets were taken to pay income taxes on the yield generated by the assets, with the remaining 2 million USD made up of the platform's native cryptocurrency Celsius (CEL).
Sources:
https://cointelegraph.com/news/celsius-founder-reportedly-withdrew-10m-before-bankruptcy-filing-ft
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