Celsius CEO Alex Mashinsky withdrew $10 million before they filed for Chapter 11, according to the Financial Times. A spokesperson defends the withdrawal took place to pay taxes.
This led Celsius to pause customer withdraws in June before filing for Chapter 11 bankruptcy in July, with Mashinksy attempting to restructure and revive the company to beThe withdrawal raises questions about whether Mashinsky knew ahead of time that the company would be freezing customer funds and withdrawals.
However, a spokesperson for Celsius told FT that the founder withdrew cryptocurrency at the time to pay state and federal taxes. “In the nine months leading up to that withdrawal, he consistently deposited cryptocurrency in amounts that totaled what he withdrew in May,” the spokesperson said, adding Mashinsky and his family still had $44 million worth of crypto frozen on the platform.
Meanwhile, sources told the FT the withdrawal was pre-planned in line with Mashinsky’s estate planning.arising from the yield the assets produced, and the remaining $2 million was made up of the platform’s native token Celsius .The questions will likely be answered when the transactions in question will be presented by Celsius in court in the next few days as part of disclosures by the crypto-lender regarding its finances.
There’s also a possibility Mashinsky could be forced to return the $10 million as in the 90 days leading up to a bankruptcy filing, payments by a company can be reversed to benefit creditors under United States laws.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Alex Morgan Shows Appreciation for Vikings Player’s Touchdown Celebration in LondonMinnesota running back Alexander Mattison had a familiar touchdown dance against the Saints on Sunday.
Read more »
Alex Rodriguez Was Asked How He Feels About Jennifer Lopez Marrying Ben Affleck Instead Of HimJennifer rekindled things with Ben mere weeks after her breakup with Alex and married the actor this summer.
Read more »
Alex Rodriguez sends Jennifer Lopez his ‘best’ after Ben Affleck weddingThe former MLB player called his relationship with Lopez a “good experience,” praising her “smart and beautiful” children, Emme and Maximilian.
Read more »
Concussion Symptoms Sideline Alex Bowman for Talladega NASCAR Playoff RaceBowman is the latest to miss time after a crash in a Next Gen car that has produced a worrying number of concussions in its first season.
Read more »
10 Observations: Alex Stalock Impresses But Blackhawks Fall to Red WingsAlex Stalock was terrific on Saturday but the Blackhawks fell to the Detroit Red Wings 3-0 at the United Center. Here are 10 observations from the loss.
Read more »
Alex Stalock Grateful for Chance With Blackhawks After Myocarditis DiagnosisAlex Stalock has played in only one NHL game the last three seasons after being diagnosed with myocarditis, but he’s looking forward to playing a full season in Chicago.
Read more »