How Celsius executives withdrew millions before bankruptcy

How Celsius executives withdrew millions before bankruptcy


Bankruptcy Court Records filed by attorneys of Celsius CEL/USD reveal that top executives of the crypto firm had withdrawn millions of cryptocurrencies before declaring the suspension of customer withdrawals.

The court submission claims that The former CEO of Celsius Alex Maschinskyco-founder DanielLeon and chief technology officer Kern Goldstein made a series of withdrawals totaling tens of millions of dollars.

Mashinsky withdrew $10 million in tokens between May and filing for bankruptcy in July. Mashinsky resigned from his role at the end of September.

Leon has withdrawn $7 million worth of tokens. On October 5, Leon resigned from his role. Similarly, Goldstein withdrew $13 million.

Lawyers have raised concerns that some transactions flagged as “withdrawals” by executives could represent transfers from one Celsius account type to another.

Also read: ‘Stunning’: Dogecoin co-founder laments Celsius as bankrupt for still promoting 17% APY

In June, Celsius suspended withdrawals, swaps and transfers from its platforms stating severe market conditions.

At the time, the crypto firm mentioned that the freeze should put the company “in a better position to meet its payout obligations over time,” presumably indicating that the company was unable to meet all payouts.

later in July, Celsius has repaid its debt through the DeFi protocol Manufacturer MKR/USD Reduction of liquidation price to $0.00.

The Office of the US Trustee is currently investigating why Celsius went bankrupt and how it managed and held customer deposits.

However, the court is moving forward with the auction of Celsius’ assets later this month.

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