It was learned that the Celsius founder pulled millions of dollars worth of assets from the accounts before freezing customer accounts.
According to a report by the Financial Times, millions of dollars withdrawn before freezing customer accounts were used for the majority of companies’ tax payments.
Celsius Founder Withdraws Millions to Use on behalf of the Company
According to a recent Financial Times report, Celsius Network founder Alex Mashinsky withdrew $10 million from the platform to pay the company’s taxes just before the market shocked its cryptocurrency lender customers’ accounts.
This situation is expected to put more pressure on Mashinsky, one of the crypto money personalities who have lost reputation in the last few months. Along with the $10 million withdrawn, however, a spokesperson for Mashinsky claims there is another $44 million frozen on the platform.
Celsius, one of the leading crypto lending companies, announced in early June that it was abruptly suspending withdrawals. Just a month later, the company filed for bankruptcy protection. The filing revealed that the company had a $1.2 billion gap in its balance sheet.
Although Celsius is generally believed to be one of the biggest casualties of the June market crash, Vermont regulators recently suggested that the firm had long misled the industry about its financial standing.
Although Mashinsky claimed that the company was profitable last year, its financial situation was not clearly known to the company’s investors. The price of the CEL token took another hit last week, after Mashinsky announced his resignation as CEO of the embattled company.
