Alex Mashinsky, the founder of Crypto platform Celsius, withdrew $10 million from the company before it stopped withdrawals for customers. According to a CNBC report, the company owed customers about $4.7 billion before it filed for bankruptcy in July 2022.
Celsius is one of the crypto companies that exploded in 2021, only for 2022’s hardships to smash its margins to smithereens. The signs were there that the company was shaking, but it kept assuring customers that things were fine until the last minute.
In a statement given to the Financial Times, Mashinsky’s spokesperson confirmed that the withdrawal did occur but mentioned that the CEO of the troubled company still had $44 million of his stock stuck. Likely, in an attempt to appear to be in the same boat with customers, but it was not the same thing.
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Without prior notice of the issues plaguing the Crypto company, customers were hard done by the sneakiness of the platform that they had trusted with their investment.
Additionally, Celsius has now been tagged as a Ponzi scheme that was allowed to go on for too long. For one, it was uncovered that newer investments and not profit financed the company’s high yield reward to older clients.
With the company’s collapse, Alex Mashinsky resigned as CEO after conceding that they had made poor asset deployment decisions. Chris Ferraro, the former CFO of Celsius, took over the role of interim CEO.
Unlike Do Kwon of Luna, Mashinsky was not facing any lawsuit at the time this article was published.
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