The CEO of a famous altcoin project sold some of the coins in his wallet. The CEO made almost half a million dollars with his sale. Here are the details…
CEO has sold this altcoin project
The founder of Celsius, an altcoin project, has made a sale, blockchain analytics firm Peckshield reported on Feb. A wallet related to Alex Mashinsky, ex-CEO of Celsius, Peckshield reportedly sold 90,000 Celsius tokens (CEL) for $480,000. The tokens sold came from the “0x4833” wallet, which bought the assets directly from Celsius Network Wallet four years ago. According to the data, the sales seem to have negatively impacted the CEL token. The coin is changing hands at $0.51774, down roughly 4% in the last 24 hours.
The court-appointed independent auditor for Celsius said that Mashinsky and other senior executives of the bankrupt company benefited from the CEL token sales. The report said that Mashinsky personally earned $68.7 million from token sales. The report added that Celsius uses customer funds to support its token, and that the business operates like a pyramid scheme.
Meanwhile, Alex Mashinsky has faced multiple allegations of misconduct since resigning from his position at the company on September 17, 2022. Reports revealed that Mashinsky withdrew $10 million from the firm a few weeks before freezing client funds and filing for bankruptcy. The former CEO was also accused of defrauding investors and misleading customers.
The latest in the Celsius case
The unsecured creditors committee and others involved in the bankruptcy case of crypto lending firm Celsius have challenged a motion that delays the debtors’ restructuring plan. On February 8, in separate court filings, the committee and withholding account holders, as well as the United States Board of Trustees and Celsius debtors, challenged a motion that seeks to extend the exclusivity of the Chapter 11 restructuring plan from February 15 to March 31. After the proposed extension, Celsius’ borrowers will also have the option to request a plan by June 30.
The unsecured creditors committee said the bankruptcy case “must move towards a resolution”, citing the impact on Celsius users waiting months without access to their funds. Appeals from the U.S. Board of Trustees and Celsius debtors claimed that the bankruptcy “consumed an enormous amount of professional fees” with no guarantees of resolution. The committee’s filing states, “The lives and finances of many account holders have been disrupted by the past behavior of the Borrowers and some of their former directors and officers.”
Objections from withholding account holders apparently expressed similar frustration: Celsius stopped withdrawals for users in June 2022, with the firm filing for Chapter 11 bankruptcy in July. In December, bankruptcy judge Martin Glenn extended the deadline until February 15, giving debtors time to submit their restructuring plan, following a November motion. At the time of filing for bankruptcy, Celsius reported a balance deficit of $1.2 billion with net liabilities of $6.6 billion and assets under management of $3.8 billion. However cryptocoin.comAs we reported, later reports suggested that the lending platform’s actual debt was close to $3 billion.
