Media: Celsius CEO Alex Mashinsky moved $10 million weeks before customer accounts were frozen

CEO of the crypto-lending platform Celsius Network, Alex Mashinsky, moved $10 million a few weeks before customer accounts were frozen. The Financial Times reports, citing unnamed sources.

According to the publication, this occurred amid a May sell-off sparked by the Terra ecosystem collapse.

It is expected that Celsius will provide details of the CEO’s deals as part of a broader financial disclosure.

A Mashinsky spokesperson said that the platform’s chief and his family still had $44 million on Celsius accounts after the freeze.

The company’s press secretary said that the CEO “transferred a certain amount, most of which was used to pay taxes.” According to one source, $8 million went to that. The remaining $2 million were related to a planned property-management operation.

The publication noted that, under U.S. law, payments made by the company in the 90 days before bankruptcy may be returned to the benefit of all creditors.

On June 13, the crypto-lending platform suspended withdrawals, exchanges and transfers between accounts.

A month later Celsius and some affiliated entities filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code. The platform’s liabilities exceeded its assets by $2.85 billion.

In August, the U.S. Trustee’s Office said there were “numerous questions” for the firm’s management. Previously the FT reported on Mashinsky’s involvement in implementing the trading strategy of the crypto-lending platform, which cost “millions of dollars”.

In September, the CEO unveiled a plan to rescue Celsius from bankruptcy, according to reports. Later Mashinsky left his post.

Earlier ForkLog reported that the company is considering the issuance of wrapped tokens as part of the restructuring plan.

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