Celsius Network founder withdrew $10mn ahead of bankruptcy
Celsius Network founder Alex Mashinsky withdrew $10mn from the crypto lender just weeks before the company froze customer accounts as it spiralled towards bankruptcy, according to people familiar with the matter.
The withdrawals of crypto by Mashinsky in May came as customers were pulling their assets from the company in large numbers, spooked by the turbulence in crypto markets and concerns about Celsius’s financial health.
Celsius froze withdrawals on June 12, leaving hundreds of thousands of retail investors unable to access their savings. The company filed for bankruptcy in July with a $1.2bn hole in its balance sheet.
Just days before Celsius froze withdrawals, the crypto lender reassured customers it had adequate reserves and declared “full speed ahead”.
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This story originally appeared on: Financial Times - Author:Kadhim Shubber
