Celsius executives withdrew millions before customer funds were frozen

Top executives of bankrupt cryptocurrency firm Celsius Network acquired more than $30 million in assets before the company stopped withdrawing client funds, according to a new court filing.

Late on Wednesday, Celsius presented a Financial statement to court, detailing the withdrawals of former CEO Alex Mashinsky, former chief strategy officer Daniel Lyon, chief technology officer Nuke Goldstein and other executives.

Mashinsky withdrew more than $10 million from cryptocurrency in May 2022. Leon withdrew nearly $7 million, and an additional $4 million from the original Celsius token called CEL was used as collateral for a loan in late May. Goldstein withdrew about $13 million and posted an additional $6 million from CEL for loan guarantees.

Mashinsky And the leon He recently resigned from the company. Goldstein is still involved in the company’s restructuring plans, according to Audio leaked to CNBC.

Before the company froze client funds in June, Celsius was one of the largest crypto lending platforms with over $8 billion in loans to clients and nearly $12 billion in assets under management. The company has attracted 1.7 million clients by offering returns of up to 17% on cryptocurrency deposits.

Celsius has been lending that money to hedge funds and some are willing to pay a higher return. But this model collapsed Combined with the market crash and the so-called crypto winter, which caused Celsius to freeze assets and eventually declare bankruptcy.

According to the filing, other Celsius executives withdrew amounts under $100,000. The only CEO to have pulled more than that was former chief investment officer Frank Van Eyten, who pulled out more than $216,000 the day before the freeze.

The company did not immediately respond to CNBC’s request for comment.

Watch: Celsius Alex Mashinksy CEO Resigns