Celsius CEO withdraw $ 10 million before bankruptcy!

Celsius CEO withdraw $ 10 million before bankruptcy!

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Answer Celsius CEO withdraw $ 10 million before bankruptcy!

In July 2022, cryptocurrency lender Celsius Network slid into bankruptcy amid massive withdrawals from the platform.

As the company was heading for bankruptcy, it froze clients’ accounts.

The latest report from the “Financial Times” showed that Celsius founder Alex Mashinsky withdrew $10 million from the cryptocurrency lender just weeks before suspending customer accounts.

Mashinsky pulled out cryptocurrencies in May 2022 when clients were withdrawing their assets in droves due to concerns about Celsius’ financial health.

Disclosure of the recall of the company’s founder could intensify scrutiny of Mashinsky, who resigned last week on September 27.

It also raises questions about whether Mashinsky knew that the company would not be able to return the assets of its customers.

Read:Ripple is looking into converting the XRP cryptocurrency into a privacy currency

Details of these transactions will be submitted by Mashinsky to the court in the coming days.

This could be a broader disclosure by Celsius about its finances.

But a spokesperson He said Mashinsky and his family still have $44 million in cryptocurrency frozen in the company.

He added:

In mid-to-late May 2022, Mr. Mashinsky withdrew a certain percentage of the cryptocurrency from his account, much of which was used to pay state and federal taxes.

In the nine months leading up to this withdrawal, he had consistently deposited cryptocurrency in amounts that he had withdrawn in May.

He remains committed to working with and uniting the community around a recovery plan that will increase cryptocurrency and liquidity for all.

What’s next for the founder of Celsius?

According to a Financial Times report, Mashinsky faces the possibility of being forced to return the $10 million he withdrew from Celsius Networks.

According to US law, payments can be recovered by a corporation within 90 days of filing for bankruptcy.

Read:Chinese company buys $40 million worth of Bitcoin and Ethereum

Another person familiar with the matter said that $8 million of the withdrawn amount went to pay taxes on the company’s income.

The rest came from $2 million in CEL, Celsius Networks’ original digital currency.

He also added that the withdrawal was pre-planned and linked to Mashinsky’s estate planning.

In August, there were also allegations that Mashinsky was using client money for wild betting.

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