Celsius Network LLC Top Executives Cashed Out Millions Of Dollars In Assets Before The Company…

By akohad Oct7,2022


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Top executives at crypto lender Celsius Network LLC pulled out crypto assets amounting to millions of dollars prior to the company pausing transfers and withdrawals of customer funds, according to the company’s latest court filing.

What happened: Late Wednesday, Celsius filed a Statement of Financial Affairs to the United States Bankruptcy Court for the Southern District of New York, showing detailed breakdown of withdrawals of the company’s executives, including former chief executive officer (CEO) Alex Mashinsky, former chief strategy officer (CSO) Daniel Leon, technology chief Nuke Goldstein and others.

The statement shows that Mashinsky withdrew about $10 million in cryptocurrency in May 2022. Leon withdrew almost $7 million, and an additional $4 million of Celsius’ crypto token CEL which was used as collateral for a loan in the same month.

It appeared that Goldstein had withdrawn close to $13 million plus an additional $6 million worth of CEL labeled collateral. However, his lawyers told CNBC that his withdrawals were moved into other accounts within the company. The total amount he took out from his account was about $500,000, mostly in Ethereum (CRYPTO: ETH).

Until the company suspended all transfers and withdrawals, Celsius was among the largest crypto lending firms with more than $12 billion in assets under management and had given over $8 billion in loans to customers. The company had over 1.7 million customers, promising them yields of up to 1.7% on crypto deposits.

After stopping all customer withdrawals, Celsius went on to file for Chapter 11 bankruptcy on July 13 this year. Celsius estimates its assets and liabilities to be around $1 billion to $10 billion, with creditors reaching more than 100,000.

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By akohad

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