Alex Mashinsky withdrew $10 million in percentage points before customer accounts were frozen: Report

Former Celsius CEO Alex Mashinsky allegedly pulled $10 million from the company’s account in May, just weeks before the now-defunct crypto loan company. froze withdraw customer, to me to me Economic times.

This is what a source close to the matter said with that “the recall was pre-planned and was related to Mashinsky’s estate planning.”

Prior to the massive withdrawal, Mashinsky was reported to be withdrawing small amounts of cryptocurrency for tax purposes, the source said, and “was constantly depositing cryptocurrency with the sums collected from what he withdrew in May.”

On September 27, Mashinsky Resigned From his position as CEO, Such as that he was “very saddened by the difficult financial conditions that members of our community face” and described himself as a “distraction” to Celsius and road to recover.

What was once a popular lending platform with ratings over 3 billion dollars He found himself applying for Chapter 11 bankruptcy In July with documents disclosure A gap of $1.2 billion in the balance sheet in percentage terms.

Centennial and American organizers

In an effort to return some money to customers, Centennial is now facing some major regulatory players.

The Department of Justice submitted a request on 30 September, Goal To request a degree Celsius for release stablecoinsIt states that “Applications are premature and must be rejected until the audit report has been submitted.”

bankruptcy company Follow up He sold $23 million of his stablecoin holdings on September 16 to help pay for the lender’s day-to-day operations.

Regarding its request to release these stablecoins, the Department of Justice rejected the proposal because “any distribution or sale at this time could inadvertently affect or limit distributions to other creditors in this case.”

The director of the Department of Justice, William Harrington, closed the file, saying the Celsius holdings were too vague to make a decision due to the “lack of transparency evident in the movement of examinees and debtors.” [Celsius] Failure to provide schedules and statements of financial affairs.

Stay up to date with cryptocurrency news, and get daily updates in your inbox.

Leave a Reply

Your email address will not be published. Required fields are marked *