Alex Mashinsky, CEO of Celsius on stage in Lisbon for the 2021 Web Summit
Piaras Ó Mídheach | Math file | Getty Images
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.
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.
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