This year saw numerous bankruptcy cases in the crypto-verse. By immediately stopping withdrawals, Celsius and Three Arrows Capital shocked the market. Insolvency filings followed their users’ terror. Recent news about the departure of its leadership and the sale of its assets involves the cryptocurrency lender Celsius. In the midst of all of this, it was discovered that three of the company’s well-known executives had withdrew a staggering $56.12 million just before filing for bankruptcy.
According to a recent court document, Celsius’s former CEO Alex Mashinsky, former CSO Daniel Leon, and CTO Nuke Goldstein all made large financial withdrawals. These money were removed from custodial accounts and were represented by Bitcoin [BTC], CEL tokens [CEL], USDC, and Ethereum [ETH], according to the Statement of Financial Affairs.
It should be mentioned that Celsius ceased withdrawals in June and filed for bankruptcy in July. Between May and June 2022, the aforementioned monies were relocated.
According to a document, Celsius’ Series B shareholders requested their own own fiduciary. The stakeholders involved in the lawsuit were something that the attorneys defending a group of equity owners wanted to emphasize. A committee of unsecured creditors was charged with “maximizing value for the customers,” according to the document.
Mashinsky withdrew almost $10 million in cryptocurrency in May 2022. Celsius CSO Leon withdrew almost $7 million between May 27 and May 31 (with an additional $4 million in CEL identified as collateral). Goldstein borrowed approximately $13 million (plus an additional $7.8 million in CEL, sometimes known as collateral).
Many people, including the other executives, were shocked by this.
No major withdrawals by other Celsius execs
Both the community and the other executives were perplexed by the aforementioned information. Twelve additional executives, including the most recent CEO of the company, Chris Ferraro, were not listed as having made any sizable withdrawals at the time of the filing.
Others were also unharmed, including the chief compliance officer Oren Blonstein and the chief risk officer Rodney Sunada-Wong. Although the next hearing is set for October 7th, Celsius customers were undoubtedly upset by the most recent information.