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Oct. 6, 2022, 3:46 p.m. EDT · CORRECTED

Celsius top executives withdrew up to $23 million worth of crypto before bankruptcy

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By Anushree Dave

Corrects amounts and names of Celsius top executives who withdrew funds this spring as the company froze customer withdrawals. Lawyers for CTO Nuke Goldstein said transfers were made to other Celsius accounts but weren’t withdrawn from the platform.

Two former executives at crypto lending firm Celsius withdrew up to $23 million worth of cryptocurrency between May and June of this year, before the company froze customer withdrawals and filed for bankruptcy.

The information was detailed in a Statement of Financial Affair s filed late Wednesday. It shows that former CEO Alex Mashinsky and former CSO Daniel Leon withdrew bitcoin /zigman2/quotes/31322028/realtime BTCUSD -0.88% , ether /zigman2/quotes/108573964/realtime ETHUSD -1.64% , USDC, and CEL tokens mainly from custody accounts, the filing shows, which was first reported by CoinDesk.

The report also detailed transfers made by current CTO Nuke Goldstein during that time. However, Goldstein’s lawyers told MarketWatch those were “regular-course transfers between his accounts,” including net positive deposits at Celsius, not withdrawals.

“Nuke is proud of his work to create a secure platform for Celsius users, and has been working tirelessly day in and day out to help restructure the Company to the benefit of all its creditors,” his lawyers said in a statement to MarketWatch.

Other executives did not make significant withdrawals during that time period, the document shows.

Mashinsky withdrew $10 million in crypto in May 2022, the Financial Times first reported. Leon withdrew $7 million with an additional $4 million worth of CEL denoted as “collateral.”

Mashinsky resigned as CEO last week, followed by Leon’s resignation earlier this week. Goldstein has been at the firm as co-founder and CTO since 2017, according to his LinkedIn.

Before freezing customer withdrawals and filing for bankruptcy in the summer, Celsius was one of the biggest crypto lending platforms, with nearly $25 billion in assets under management in October 2021. By the end of last year, the firm had reached a $3 billion valuation. The firm filed for chapter 11 bankruptcy in July.

The next court hearing is scheduled for Oct 7 at 10am ET. Mashinsky did not respond to request for comment earlier this week. Daniel Leon could not be reached for comment. Celsius did not immediately respond to a request for comment.

US : CoinDesk
-150.29 -0.88%
Volume: 0.00
Dec. 5, 2022 4:08p
US : Kraken
-20.91 -1.64%
Volume: 27.52M
Dec. 5, 2022 4:08p

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