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Celsius former CEO withdrew $10 million to “pay taxes” before declaring bankruptcy

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The former CEO of Celsius Network, Alex Mashinsky, withdrew $10 million in May to pay taxes before the company went bankrupt.

Alex Mashinsky, the former CEO of Celsius, withdrew $10 million in May to pay taxes at the state and federal levels as well as for “estate planning,” according to a representative for Mashinsky.

In the weeks before the company filed for bankruptcy, Alex Mashinsky, the former CEO of the defunct Celsius Network, withdrew millions to pay state and federal taxes.

He withdrew $10 million from the business in May of this year, when the cryptocurrency market was in freefall, according to people with knowledge of the situation who spoke to the Financial Times.

Concern was raised by the decision to withdraw money during that time, and the cryptocurrency community questioned whether Mashinsky knew the business would face financial difficulties after the market crash.

According to the report, those with knowledge of the situation said that $8 million was used to pay taxes on income from assets on Celsius, and the remaining $2 million was invested in CEL tokens for “estate planning.”

A representative for Mashinsky claimed that the $44 million in cryptocurrency that he and his family still had frozen with Celsius had been revealed during the bankruptcy proceedings.

He did, however, add that he had deposited money equal to what he had taken out to pay taxes. The representative stated,

Early in June, one of the top cryptocurrency lending businesses abruptly announced the suspension of withdrawals.

The business ultimately decided to seek bankruptcy protection after just one month. It turned out that the company’s balance sheet had a $1.2 billion hole in it.

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