According to popular crypto investor, Simon Dixion, “I am sorry for all that did not get the same chance to withdraw as they believed more than the founders...”
A new court record shows that Celsius's top three executives made some withdrawals before the company filed for bankruptcy. The $56.2 million withdrawal was reportedly made between May and June before the company suspended withdrawals.
A financial affairs statement was filed during the late hours of Wednesday. This report contains the recent development of the now-defunct crypto lending platform. It revealed that former CEO Alex Mashinsky, former CSO Daniel Leon, and CTO Nuke Goldstein made some huge withdrawals.
These withdrawals were largely from custody accounts in the form of Bitcoin, USD Coin, Celsius token, and Ethereum.
According to the record’s breakdown:
- Mashinksky withdrew about $10 million in May.
- Leon cashed out $7 million and withdrew another $4 million worth of CEL, which was donated as collateral. He made this withdrawal between May 27 and 31.
- Goldstein withdrew around $13 million and an extra $7.8 million worth which was also donated as collateral.
The new record also showed that about a dozen of the company’s executives did not make such significant withdrawals during the period they made theirs. These include the company’s Chief Compliance Officer, Oren Blonstein, Chief Risk Officer, Rodney Sunada-Wong, and CEO, Chris Ferraro.
Reacting to the recent development, popular crypto investor, Simon Dixion, said,
“I am sorry for all that did not get the same chance to withdraw as they believed more than the founders. The best we can do is ensure we unite around a creditor-led reorg. without insiders.”
An independent government official appointed by the US Trustee’s Office is investigating the reasons for Celsius's downfall and how it managed and stored customer deposits.
However, the bankruptcy court has ordered Celsius to update its Unsecured Creditors Committee (UCC). This represents all company’s creditors and gives them regular reports on its financial status and cash management.
Celsius must also disclose its monthly budget, cash balance, wage expenses, and taxes. It was also ordered to show its performance metrics on its Bitcoin mining business and the proceedings from the Bitcoin sales mined by the firm’s mining facilities.
Going forward, Celsius must gain permission from UCC for any critical vendor payment of more than $50,000. The next hearing has been scheduled for October 7 at 10 am E.T.
