A financial disclosure form filed in New York this week has revealed that top executives of the now-bankrupt Celsius Network withdrew $21 million in cryptocurrencies prior to the freezing of customer accounts.
Between May and June 2022, former CEO Alex Mashinsky and ex-CSO Daniel Leon withdrew funds in Bitcoin, Ether, USDC, and CEL tokens. Court documents confirmed that Mashinsky withdrew $10 million, while Leon withdrew $7 million and an additional $4 million in CEL.
Mashinsky stepped down as CEO at the end of September but expressed his commitment to continue supporting the company and its creditors.
Earlier reports indicated that CTO Nick Goldstein withdrew $13 million and later $7.8 million in CEL. However, transactions linked to different associated entities suggested that he transferred his holdings into various accounts within Celsius.
In the ongoing bankruptcy case, the crypto lender is required to keep the Unsecured Creditors Committee (UCC)—which represents its customers—updated on its cash management and financial status, including any significant payments exceeding $50,000. The next hearing for Celsius is scheduled for later today, October 7th.