Celsius Founders Withdrew $56 Million Before Bankruptcy

Celsius (CEL)

✍️ 28 December, 2023 - 13:43 👤 Editor: Jakub Motyka

  • The crypto winter has hit a number of companies, one example being the lending platform Celsius.
  • Executives have been found to have made millionaire withdrawals before declaring bankruptcy.
  • Could that affect its current legal status?

Before announcing its downfall due to winter fallout, it appears that Celsius's founding executives withdrew approximately $56 million prior to bankruptcy according to Coindesk. Together with ex-CEO, ex-CSO Daniel Leon, and CTO Nuke Goldstein managed to withdraw massive amounts of ether, USDC and CEL from their accounts in May, before suspending withdrawals to their users. This joins other news where, according to the information discovered, the CEO would have withdrawn 10 million dollars.

The movements made by the three were made between May and June, a few months before declaring bankruptcy. Shortly after this legal measure, they have been forced to return funds to their users. Consequently, and due to the investigation carried out by the authorities, documents were found that revealed a hole of several million USD in the balance of the lending platform.

What Information Exists On The Amounts Withdrawn By The Founding Executives Of Celsius?

At the moment, according to the documents delivered during the bankruptcy declaration, only the head executives of the company, the CEO, the CSO and the CTO managed to make withdrawals. A dozen more executives, such as new CEO Chris Ferraro, didn't make any significant retirements during this period. Consequently, it is believed that the withdrawals made by the heads of the company were planned in advance.

The movements indicate that Mashinsky withdrew approximately 10 million dollars, while Leon withdrew 7 million, and an additional 4 million in CEL. Ultimately, Goldstein withdrew approximately $13 million, and an additional $7 million in CEL. All these movements were made around May 27 and 31 of this year, a few weeks before filing for bankruptcy.

What Is The Current Status Of Celsius?

Celsius filed for bankruptcy protection under Chapter 11 of the United States bankruptcy law in July. From that moment, and due to the large deficit discovered in the company's accounts, an independent examiner, imposed by the United States Department of Justice, is investigating what happened and how they will return the funds to their users. Regarding the latter, the current administrators of the lending company have spoken of new restructuring plans.

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