Celsius declared bankruptcy. At the same time, this company specializing in borrowing and credit in cryptocurrency filed a detailed report with the court of the Eastern District of New York. Also, the company filed for Chapter 11 bankruptcy protection in the same court.
However, before the company’s accounts were frozen, its former CEO Alex Mashinsky made a withdrawal of US$10 million from the company’s accounts. According to information given by his spokesperson, his funds withdrawn before the accounts were frozen were used to pay state and federal taxes.
But a few days later, other information was made public by the court. Indeed, according to the court for the Eastern District of New York, the withdrawals of funds were much larger. It would actually be a withdrawal of $ 56.12 million made by three senior officials of the company before its bankruptcy.
3 former Celsius executives withdrew $56.12 million from company accounts
Former CEO Alex Mashinsky, CSO Daniel Leon and CTO Nuke Goldstein withdrew $56.12 million in crypto just before Celsius’ bankruptcy was official.
Indeed, after filing for bankruptcy in court for the Eastern District of New York and declaring Celsius bankrupt, new court documents have emerged with greater clarity.
These court documents brought new information according to which, these three executives mentioned above made large withdrawals in digital assets (bitcoin cryptocurrency, Ethereum and the CEL token).
For users of this virtual currency lending platform, this is a new scandal that needs to be cleared up.
And for good reason, since the declaration of bankruptcy of the company, a great doubt hangs over the future of the community. Also, since the court decided that the company Celsius will be auctioned in the next few days, the uncertainties have become great.
Details of transactions made by Alex Mashinsky, Daniel Leon and Nuke Goldstein
Former CEO Alex Mashinsky withdrew the equivalent of $10 million in fiduciary value in May 2022. This operation of withdrawing funds was carried out well before the declaration of bankruptcy.
Alex Mashinsky had also voluntarily reported this withdrawal of funds in cryptocurrency to the Official Committee of Unsecured Creditors (UCC). For this committee, the reasons for this withdrawal were valid since the money withdrawn was used to pay taxes.
However, it seems that this withdrawal was not the only one to have been made from company accounts.
Indeed, Daniel Leon also withdrew US$7 million plus another additional US$4 million in CEL token at the end of the same month. Nuke Goldstein also withdrew around $13 million and another $7.8 million in CEL tokens.
This brings the total funds withdrawn to 41.8 million US dollars instead of 56 or 56.12 as announced by some media. Where did the remaining 14.32 million go? We will no doubt have more after the hearing in the coming weeks.