According to a recent Financial Times report, Celsius Network founder Alex Mashinsky withdrew $10 million from the platform to pay the taxes shortly before the cryptocurrency lender stopped its customers' accounts, sending shockwaves throughout the market.

The discovery will increase the pressure on Mashinsky, among the most prominent cryptocurrency identities which have fallen from grace spectacularly in recent months.

The question concerns whether the Celsius founder had been aware that the cryptocurrency lender's clients' funds would be locked on the platform. Mashinsky's spokesperson claims that he has another $44 million locked up on the platform.

Mashinsky's behavior has unquestionably sparked controversy, and he was already in hot water. FatMan from the Terra community noted that he was pulling back funds while asserting the company seemed to have adequate reserves.

One of the most prominent cryptocurrency lending companies abruptly suspended withdrawals in early June. After only one month, the company filed for bankruptcy. The company's balance sheet revealed a $1.2 billion gap.

While it is widely assumed that Celsius was one of the top casualties of the June market crash, Vermont regulators recently recommended that the firm had been misguiding the sector about the state of its financial affairs for a long time. Despite Mashinsky's claim that the company was lucrative last year, the company's financial situation was rather dire, unbeknownst to the company's investors.

Do you think he purposely withdrew the $10M before declaring bankruptcy? Drop your comments by sharing this article on social media.

Oct 3, 2022
Crypto News

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