Alex Mashinsky, founder and former CEO of Celsius Network, has withdrawn $10 million from cryptocurrency lender Celsius. bankruptcy now beforestop withdrawalof customers in June reportfrom the Financial Times, citing anonymous sources.
Mashinsky, the former CEO who resigned on September 27, has withdrawn crypto. In May, according to the FT report, at that time the crypto market It was facing the collapse of the Terra ecosystem that caused $60 billion in damage that month.
Celsius will submit details of Mashinsky’s transaction to the court in the coming days. as part of the financial disclosure report from the FT.
A spokesman for Masinsky was quoted by the newspaper as saying that Masinsky had disclosed to the Unsecured Creditors Committee (UCC) in bankruptcy proceedings that he and his family had about $44 million in crypto. which was immersed in the Celsius platform after its withdrawal. A spokesperson said Mashinsky “had only withdrawn a few percent of the crypto. in his account And most of it is used to pay state and federal taxes,” according to the FT.
Celsius previously halted withdrawals, trading and transfers on the platform in June, citing “extreme market conditions” before filing for Chapter 11 bankruptcy protection a month later in U.S. Bankruptcy Court for the Southern District. of new york In court filings, Celsius said there was a $1.2 billion gap between assets and liabilities on the balance sheet. The documents show that Celsius has $4.3 billion in assets and $5.5 billion in liabilities.
As for the statement when filing for bankruptcy first, Celsius said, “If at that point the withdrawal does not stop. Massively accelerating user withdrawals will allow some clients, such as those who are the first to make a withdrawal, to receive the full amount while others may wait for Celsius to reap value from the activity in which the active asset is deployed. low or long term before they get their money back.”
Then Mashinsky called the decision “It is right… for our community and our company,” he added, adding that in Celsius’ history we can see this as a moment to say that the company acted with determination and confidence to serve the community and build its future. of the company”
Source: Coindesk