December 1, 2022

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The CEO got $100 million before filing for bankruptcy

The CEO got $100 million before filing for bankruptcy

On July 13, US cryptocurrency platform Celsius Network filed for bankruptcy protection in the US, the so-called Chapter 11 filing.

A new document later shows that senior management withdrew $18 million, or about 193 million Norwegian kroner, from cryptocurrency in the past two months before the company filed for bankruptcy protection, according to The Wall Street Journal.

Alex Mashinsky, the former CEO of the cryptocurrency lender, withdrew $10 million, about 107 million Norwegian kroner, from the company between May and July.

Mashinsky resigned from his main position at the end of September after pressure from Celsius’ creditors.

His wife, Kristen Mashinsky, withdrew $2 million, while former chief strategist Daniel Leon withdrew about $7 million in tokens over the same period.

Customers own 4.7 billion

Chapter 11 means that creditors cannot claim their money back or file a C for bankruptcy.

In June, Celsius froze withdrawals, in an effort to save the company, and the bankruptcy filing was no surprise.

After that, Celsius owes its users about $4.7 billion, according to the bankruptcy filing — and it had a deficit of about $1.2 billion.

Thousands of Celsius clients came together to try to cash out crypto assets after bankruptcy protection.

Mashinsky is also accused of making false and misleading statements to clients and investors about the company’s financial condition. The company is said to have already incurred heavy losses until 2021.

The company’s creditors committee is still investigating the percentage issue.

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