A representative of the crypto-lending company Celsius denied reports that CEO Alex Mashinsky attempted to leave the United States amid the ongoing liquidity crisis. Cointelegraph reports.
“All Celsius employees, including the chief executive, are focused and diligently working to stabilise liquidity and operations. Therefore any reports that the Celsius CEO attempted to leave the United States are false,” the company said.
On June 27, investor Mike Alfred said that Mashinsky “attempted to leave the country via Morristown Airport (New Jersey), but was stopped by authorities.”
At the moment it is unclear whether he was arrested or simply barred from leaving, Alfred added.
BREAKING: Alex Mashinsky attempted to leave the country this week via Morristown Airport but was stopped by authorities. Unclear at this moment whether he was arrested or simply barred from leaving. Please contact me if you have more information on this.
— Mike Alfred (@mikealfred) June 27, 2022
According to him, the Celsius CEO was attempting to fly to Israel. One of the users confirmed, that they also heard this information from their own source.
Some commentators were skeptical of the reports.
“A few people are reading the same FUD-story. Moreover, Celsius has an office in Israel. Alex is always on the move. So such a flight would be nothing unusual,” Puffel18 wrote.
Multiple people read the same FUD story. Also Celsius has an office in Israel. Alex is moving around all the time. So this flight would be nothing special.
— Puffel #🥞🐰 (@Puffel18) June 27, 2022
On June 13 Celsius paused withdrawals and operations on the platform due to extreme market conditions.
Journalists found that the company hired lawyers for potential financial restructuring and turned to Citigroup for capital.
Professor of law Adam Levitin of Georgetown University called the crypto lender’s bankruptcy virtually inevitable. According to the press, Goldman Sachs, the financial conglomerate, plans to raise $2 billion to buy the company’s assets.
Regulators in several US states began investigating Celsius’ actions.
Follow ForkLog’s Bitcoin news on our Telegram — cryptocurrency news, prices and analysis.