Celsius Network’s Three Top Executives Withdrew $56 Million in Cryptocurrency Before the Company Went Bankrupt

All of this will lead to inquiries on whether or not the executives of Celsius were aware of the company’s precarious financial situation at the time of these transactions.

According to court records, three top officials at Celsius Network withdrew a total of $56 million worth of cryptocurrency in the weeks leading up to the company’s decision to freeze consumer accounts.

According to recently submitted documents, Alex Mashinsky, Daniel Leon, and Nuke Goldstein claimed ownership of Bitcoin, Ether, USD Coin, and Celsius tokens with a combined value of millions of dollars.

Last Monday, Mashinsky resigned from his position as Chief Executive Officer of Celsius after a number of the company’s clients demanded that he do so.

It has now come to light that Leon, who was the co-founder and chief strategy officer of the crypto lender that went bankrupt, has also resigned from his position.

All of this will lead to inquiries on whether or not the executives of Celsius were aware of the company’s precarious financial situation at the time of these transactions.

During this time, there is concern that hundreds of thousands of customers could find themselves at the back of the line while they wait for their deposits to be returned.

At the time of its filing for bankruptcy, Celsius was struggling to fill a hole in its finances that was estimated to be worth $1.2 billion; an estimated 300,000 clients have a balance that is greater than $100.

The Celsius Network is attempting to open withdrawals for some users, and as a result, a hearing is scheduled to take place on Thursday. However, the plans have been met with stiff opposition from the Department of Justice in the United States.

The corporation contends that the assets that are being kept in its “custody program and withhold accounts” are not its property, and as a result, it wants to refund $225 million to approximately 63,000 consumers.

However, U.S. trustee William Harrington has argued that Celsius Network’s motion to return these funds is premature because it is still unclear how much cryptocurrency this company holds and how it relates to deposits made by customers. In other words, it is still unknown how much money customers have deposited with Celsius Network.

Harrington continued by issuing a warning that if these withdrawals were permitted at this time, “it could inadvertently damage or limit payouts to other creditors in this matter.”

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