ICYMI: Celsius Founder Withdrew $10M Prior to Bankruptcy Filing – What Happened?

The Celsius Network saga continues to unfold. Recent reports highlight a controversial action by Alex Mashinsky, the founder, and former CEO of Celsius Network. News broke that he reportedly took 10 million USD from the crypto lending platform only weeks before it plunged into crisis, raising serious questions about his role in the company's downfall.

On Sunday, October 2, the Financial Times published a report noting that Celsius founder Alex Mashinsky withdrew $10 million in crypto just weeks ahead of freezing customer accounts and ultimately filing for bankruptcy. This timing has sparked outrage and intensified scrutiny of Mashinsky's financial decisions leading up to the collapse.

The withdrawal raises concerns about insider knowledge and potential self-dealing. Was Alex Mashinsky aware of the impending liquidity crisis and took action to protect his own assets? “Celsius Network founder Alex Mashinsky withdrew $10mn from the crypto lender just weeks before the company froze customer accounts as it spiralled towards” insolvency, the report indicates. This timing is critical, as it directly precedes the platform's halting of withdrawals and subsequent bankruptcy filing.

The implications of this withdrawal are significant for Celsius Network's creditors, including thousands of individual investors who have lost access to their funds. Legal proceedings are ongoing, and this revelation is likely to further complicate the already complex situation. Stay tuned for updates as this story develops.