Mashinsky Withdrew $10 Million From Celsius Prior to Bankruptcy: Report

Alex Mashinsky – founder of Celsius Network – reportedly withdrew $10 million from the struggling lending platform weeks before its bankruptcy.  Under U.S law, he may be forced to return those funds for the benefit of his company’s creditors.  Mashinsky’s Last Minute Withdrawal Mashinsky's hefty withdrawal came in late May – at a time when Celsius users were already withdrawing their assets in droves. Fear overtook customers as crypto markets slid in Q2, and worries over Celsius’ financial health grew…

Celsius CEO Seized Control of Trading Operations Months Before Bankruptcy: Report

Celsius boss Alex Mashinsky may be largely responsible for many of the firm’s unprofitable trades leading up to its bankruptcy.  A new report from the Financial Times (FT) suggests that the CEO may have taken over trading operations back in January. He then took actions with company funds that overruled the decisions of other executives with multiple years of finance experience.  Mashinsky’s Massive Trades The latest info is according to multiple people familiar with the matter – though the information…

Celsius Debts Far More Than Earlier Reported, Nears $3B

According to a coin report from Sunday, crypto lending platform Celsius is in debt to the tune of $2.85 billion, contrary to its previous reports. The recent reveal could spell greater trouble for the bankrupt firm seeing as their chapter 11 filing had claimed a different figure. Contrasting Deficit Balances Celsius was one of several platforms that crumbled in the wake of the Terra crash. The company also felt the pressure from the ongoing crypto slump and filed for bankruptcy…

It Gets Worse: Celsius Email List Leaked to Third-Party

Bankrupt crypto-lender Celsius sent an email to customers on Thursday revealing that their emails were leaked in a data breach. The company claimed this doesn’t present any high risk to their clients, but informed them as a matter of communication. In the email ZeroHedge shared, Celsius said that it was informed of the leak by Customer.io. The company serves as Celsius’ vendor and functions as an automated messaging platform for sending data-driven marketing emails.  The vendor said that one of…

Celsius Users May Lose Their Funds Permanently, Says Economist

Even after the Celsius Network’s chapter 11 bankruptcy filing, the debacle surrounding its collapse continues to deepen. Frances Coppola, a well-known economist has asserted that the platform’s users are unlikely to recover their missing funds. Celsius a Shadow Bank? Earlier this month, the crypto lender collapsed amidst fraud allegations and liquidity problems that caused it to halt withdrawals. Later on, the network announced that it had applied for Chapter 11 bankruptcy in New York. At the time, the claim was…

BlockFi CEO Demands Not to be Compared to Celsius and Voyager

Zac Prince – CEO of crypto lending platform BlockFi – wants people to stop comparing his company to other embattled crypto firms. He claims there is a qualitative distinction between the magnitude of BlockFi’s troubles compared to Celsius or Voyager’s. In a tweet on Monday, Prince called on journalists and commentators to quit “putting BlockFi in the same bucket” as Celsius or Voyager. "Two months ago we looked the ‘same’,” he said. “They shut down and have impending losses for…

Celsius Pays Back Another $140 Million on MakerDAO Loan

Crypto lending platform Celsius continues to defend itself from liquidation and looming insolvency. The firm has paid down another $140 Million on its Bitcoin-backed loan with MakerDAO since the start of the month. Celsius Stays Afloat As data from Defi Explore demonstrates, Celsius has made four payments covering its outstanding debt since July 1st. The company’s initial payment on Friday came in the form of 22.6 million DAI – an algorithmic dollar-pegged stablecoin. The platform submitted another, smaller payment of…

Goldman Sachs is Raising 2 Billion Dollars to Buy Celsius’s Assets: Report

Banking giant Goldman Sachs is reportedly raising $2 billion to buy the assets of Celsius – the troubled crypto lending platform. The news comes from two sources familiar with the matter, according to a report from CoinDesk. The bank is ready to buy the lending firm’s assets at a steep discount in the event of a bankruptcy. And, it will do so using commitments from investors. The move is part of Goldman’s effort to draw commitments and gauge interest from…

BnkToTheFuture Proposes Plan to Help Celsius Recover

Celsius Network’s lead investor BnkToTheFuture and its co-founder Simon Dixon have proposed a recovery plan for the beleaguered crypto lender. In a June 18 statement, Dixon - also BnkToTheFuture’s CEO - said the solution involves security tokens, debt, and equity. To prove the recovery plan works, he noted that Bitfinex previously used a similar strategy. According to Dixon, BnkToTheFuture helped save Bitfinex from liquidation in 2016 after the exchange suffered a high-profile hack. He did not specify how security tokens,…

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