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Celsius execs cashed out $21 million before bankruptcy

Celsius execs cashed out $21 million before bankruptcy

A financial disclosure form filed in New York this week has revealed that top executives of the now bankrupt Celsius Network withdrew $21 million in cryptocurrencies before freezing customer accounts.

Between May and June 2022, ex-CEO Alex Mashinsky and ex-CSO Daniel Leon withdrew funds in the form of Bitcoin, Ether, USDC, and CEL tokens. The court documents confirmed that Mashinsky withdrew $10 million and Leon withdrew $7 million and an additional $4 million in CEL.

Mashinsky stepped down as CEO at the end of September but retained that he would continue to support the company and support the creditors.

It was earlier reported that CTO Nick Goldstein withdrew $13 million and later $7.8 million in CEL, but transactions placed in different associated entities indicated that he shifted his holdings into different accounts within Celsius.

For the bankruptcy case, the crypto lender is asked to inform the Unsecured Creditors Committee (UCC), which represents customers of the company, of its cash management and financial status, which includes any large payments made above $50,000. The next hearing for Celsius is scheduled for later today, the 7th of October.

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