It’s a difficult time for crypto investors, and Celsius has just added salt to the wound. The former CEO of the crypto entity, Alex Mashinsky, is giving the crypto world Do Kwon vibes. Mashinsky resigned as president and CEO of the crypto entity on September 27 (Eastern Time).
The situation for the cryptocurrency lender Celsius Network appears to be worsening. Detailed crypto sources indicate that the Network`s CEO Alex Mashinsky pocketed $10 million from his crypto loan company weeks before it banned consumer withdrawals.
Celsius ex-CEO $10 million withdrawal in question
Celsius was one of the first large crypto institutions to face the effects of the crypto market crisis in June. The demise of the stablecoin Terra and its sister cryptocurrency Luna precipitated one of the most treacherous crypto winters.
On June 12, the crypto giant organ subsequently froze withdrawals, preventing hundreds of thousands of individual investors from accessing their savings. The company filed for bankruptcy in July with a $1.2 billion deficit on its balance sheet.
The crypto lender stated in its application that it has approximately $167 million in liquid assets. Customers of Celsius owe approximately $4.7 billion. It continues getting worse. Alex resigned at the end of last month as investors continued to be anxious about their investments. As soon as he resigned, other crypto investors realized that moving forward would be difficult.
