Former Celsius Network CEO, Alex Mashinsky, withdrew $10 million from the firm a few weeks before it blocked customer accounts, citing liquidity issues, the Financial Times has learned, citing people familiar with the matter.
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A spokesperson for Mashinsky told media that in mid to late May 2022, he withdrew a "percentage of cryptocurrency in his account, much of which was used to pay state and federal taxes." The spokesperson added:
"In the nine months leading up to that withdrawal, he consistently deposited cryptocurrency in amounts that totaled what he withdrew in May."
Mashinsky and his family still have $44 million of crypto blocked with Celsius, which he had disclosed to the official unsecured creditors committee (UCC) in the bankruptcy proceedings, the spokesperson noted.
In late September, Mashinsky submitted his letter of resignation. He said he would continue to work with the community on a plan that will provide the "best outcome for all creditors."
Celsius filed for bankruptcy under Chapter 11 of the US Bankruptcy Code in July this year. The company says the restructuring will help it "maximize value for all stakeholders." Celsius owes users more than $4.7 billion.
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