{"id":31236,"date":"2022-10-07T01:56:33","date_gmt":"2022-10-07T01:56:33","guid":{"rendered":"http:\/\/egrowonline.com\/?p=31236"},"modified":"2022-10-07T01:56:33","modified_gmt":"2022-10-07T01:56:33","slug":"celsius-execs-cashed-out-millions-before-cryptocurrency-company-went-bust","status":"publish","type":"post","link":"http:\/\/egrowonline.com\/?p=31236","title":{"rendered":"Celsius execs cashed out millions before cryptocurrency company went bust"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div id=\"\">\n<p>Two former executives at Celsius Network cashed out millions in cryptocurrency shortly before the exchange <span class=\"link\"><a target=\"_blank\" href=\"https:\/\/www.cbsnews.com\/news\/celsius-bankruptcy-filing-most-activity-still-paused\/\" data-invalid-url-rewritten-http=\"\" rel=\"noopener\">declared bankruptcy this summer<\/a><\/span>, court documents show.\u00a0<\/p>\n<p>Former CEO Alex Mashinsky and ex-Chief Strategy Officer Daniel Leon in May withdrew $10 million and $11 million, respectively, according to a legal <a target=\"_blank\" href=\"https:\/\/cases.stretto.com\/public\/x191\/11749\/PLEADINGS\/1174910062280000000005.pdf\" rel=\"nofollow noopener\">filing<\/a> in the case. Celsius filed for Chapter 11 protection from its debts in July.<\/p>\n<p>Mashinsky and Leon\u00a0<a target=\"_blank\" href=\"https:\/\/www.businesswire.com\/news\/home\/20220927005812\/en\/Celsius-Network-CEO-Submits-Letter-of-Resignation\" rel=\"nofollow noopener\">resigned<\/a>\u00a0last month. Celsius did not immediately respond to a request for comment Thursday.\u00a0<\/p>\n<aside class=\"newsletter_signup \">\n<figure class=\"embed embed--type-newsletter-widget embed--float-none embed--size-large embed--type-iframe\" data-ads=\"{\">\n<\/figure>\n<\/aside>\n<p>The New Jersey company launched in 2018 and quickly became one of the darlings of the crypto community. Celsius marketed itself as a type of crypto bank, encouraging people to deposit their digital currencies with the firm and earning money by\u00a0 borrowing or lending against those funds. \u00a0<\/p>\n<p>In 2019, Celsius launched a mobile app and made its services available in 100 countries. A year later, the company landed millions of dollars in venture capital, which helped it launch a crypto-mining arm called Celsius Mining, which it still owns today. By the spring of 2021, Celsius had 200 employees and was managing about $10 billion worth of crypto assets on its platform.\u00a0<\/p>\n<figure class=\"embed embed--type-video embed--type-content_video is-video embed--float-none embed--size-medium \"><figcaption class=\"embed__caption-container\"><a target=\"_blank\" href=\"https:\/\/www.cbsnews.com\/video\/market-fraud-cryptocurrency-crash\/\" class=\"embed__headline-link\" data-invalid-url-rewritten-http=\"\" rel=\"noopener\"><\/p>\n<p>          <span class=\"embed__icon\"><br \/>\n            <\/span><\/p>\n<p>          <span class=\"embed__headline\">Market fraud and skepticism fuel crash of cryptocurrency<\/span><\/p>\n<p>          <span class=\"embed__video-duration\">05:26<\/span><\/p>\n<p>                      <\/a><\/p>\n<\/figcaption><\/figure>\n<p>But Celsius collapsed as the\u00a0<span class=\"link\"><a target=\"_blank\" href=\"https:\/\/www.cbsnews.com\/news\/bitcoin-price-cryptocurrency-falls-cbs-news-explains\/\" data-invalid-url-rewritten-http=\"\" rel=\"noopener\">price of digital currencies plummeted<\/a><\/span>\u00a0this year. Goldstein said in September that the company is considering giving out IOU tokens as a promise to eventually make customers whole, according to an internal company\u00a0<a target=\"_blank\" href=\"https:\/\/www.youtube.com\/watch?v=5YihvM0USw0\" rel=\"nofollow noopener\">call<\/a>\u00a0shared publicly by a Celsius customer.\u00a0<\/p>\n<p>Celsius is also holding an auction on October 20 and may sell some of its assets, court documents\u00a0<a target=\"_blank\" href=\"https:\/\/cases.stretto.com\/public\/x191\/11749\/PLEADINGS\/1174910042280000000007.pdf\" rel=\"nofollow noopener\">show<\/a>. Sam Bankman-Fried, co-founder of crypto exchange FTX, has expressed interest in buying some Celsius assets, Bloomberg News <a target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-09-27\/crypto-billionaire-bankman-fried-eyeing-bid-for-celsius-assets?sref=sBMxP0gT\" rel=\"nofollow noopener\">reported<\/a>.\u00a0<\/p>\n<p>    <!-- data-recirc-source=\"chartbeat\" --><\/p>\n<aside class=\"component list recirculation component--type-recirculation \">\n<p><h3 class=\"component__title\">Trending News<\/h3>\n<\/p>\n<\/aside>\n<p><!-- tags --><\/p>\n<div class=\"content-author\">\n    <a target=\"_blank\" href=\"https:\/\/www.cbsnews.com\/search\/author\/khristopher-j-brooks\/\" class=\"content-author__name\" data-invalid-url-rewritten-http=\"\" rel=\"noopener\">Khristopher J. Brooks<\/a><\/p>\n<div class=\"content-author__bio\">\n<div class=\"content-author__full-information\">\n<p class=\"content-author__text\">Khristopher J. Brooks is a reporter for CBS MoneyWatch covering business, consumer and financial stories that range from economic inequality and housing issues to bankruptcies and the business of sports.<\/p>\n<\/p><\/div><\/div>\n<\/div><\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/www.cbsnews.com\/news\/celsius-bankruptcy-alex-mashinsky-daniel-leon-nuke-goldstein\/\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Two former executives at Celsius Network cashed out millions in cryptocurrency shortly before the exchange declared bankruptcy this summer, court documents show.\u00a0 Former CEO Alex Mashinsky and ex-Chief Strategy Officer Daniel Leon in May withdrew $10 million and $11 million, respectively, according to a legal filing in the case. Celsius filed for Chapter 11 protection [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":31237,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[36],"tags":[4158,11645,4408,20,52,1860,910],"class_list":["post-31236","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-bust","tag-cashed","tag-celsius","tag-company","tag-cryptocurrency","tag-execs","tag-millions"],"jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"http:\/\/egrowonline.com\/wp-content\/uploads\/2022\/10\/gettyimages-1242008317.jpg","_links":{"self":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/31236","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=31236"}],"version-history":[{"count":1,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/31236\/revisions"}],"predecessor-version":[{"id":31238,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/31236\/revisions\/31238"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/media\/31237"}],"wp:attachment":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=31236"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=31236"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=31236"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}