Alex Mashinsky, CEO of Celsius on stage in Lisbon for Web Summit 2021

Piaras Ó Midheach | Sports file | Getty Images

According to a new court filing, senior executives at bankrupt crypto lender Celsius Network withdrew more than $30 million in assets before the company halted withdrawals of customer funds.

Late Wednesday, Celsius filed a Statement of financial affairs in court, providing a breakdown of the removals of former CEO Alex Mashinsky, former chief strategy officer Daniel Leon, chief technology officer Nuke Goldstein and other executives.

Mashinsky withdrew over $10 million in cryptocurrency in May 2022. Leon withdrew nearly $7 million, and another $4 million of Celsius’ native token called CEL was used as collateral for a loan in late May. . Goldstein withdrew about $13 million and deposited an additional $6 million from CEL as loan collateral.

Mashinsky and Leon recently resigned from the company. Goldstein is still involved in the company’s restructuring plans, according to audio leaked to CNBC.

Before the company froze client funds in June, Celsius was one of the largest crypto lending platforms with over $8 billion in client loans and nearly $12 billion in assets under management. The firm had attracted 1.7 million customers by offering returns of up to 17% on crypto deposits.

Celsius was lending that money to hedge funds and other loans to pay an even higher return. But that model came crashing down with the market crash and so-called crypto winter, forcing Celsius to freeze assets and eventually file for bankruptcy.

Other Celsius executives made withdrawals of less than $100,000, according to the filing. The only other executive to withdraw more than that was former chief investment officer Frank van Etten, who withdrew more than $216,000 days before the freeze.

The company did not immediately respond to CNBC’s request for comment.

LOOK: Celsius CEO Alex Mashinsky steps down

About The Author

Related Posts