New information has come about regarding the dips incurred by the Celsius Network that have traders and analysts raising a few eyebrows.
What’s Happening at Celsius?
Not long ago, it was announced that Celsius was going to give traders their money back and that it was going to allegedly try and make things right with its customers. This made it appear as though Celsius was something of a victim company. A firm that fell to the ongoing volatility and speculation of the crypto bear market, and that maybe it wanted to do the correct thing despite the uncontrollable circumstances it was facing.
However, this may not have been the case, it it’s now been revealed that two executives of Celsius – both ex-chief strategy officer Daniel Leon and former CEO Alex Mashinsky – cashed out millions of dollars in the month of May 2022 just before the company decided to halt all withdrawals and file for bankruptcy protections. This raises a lot of questions, a big one being, “What were they up to?” and, “Was this all part of a giant rug pull or some major attempt to make off with funds?”
Mashinsky announced not too long ago that he was resigning from his post. Again, the idea was given to traders that executives were seeking to do the right thing, and that perhaps Mashinksy was embarrassed about what had occurred and now he was going to vacate his position to let someone more qualified step in and take over.
But this new development suggests an entirely different scenario. Is it possible that Mashinsky, in cashing out the millions of dollars in question, now has what he needs to live a nice, comfy life on some island paradise somewhere? Was this all part of a plan to retire early?
Celsius is becoming one of the most controversial companies in the crypto space. Things started out badly over the summer when the lending network announced that it was going to put a halt in place on all withdrawals as a means of retaining liquidity and keeping itself stable during the ongoing bear market. Many people couldn’t get access to their stashes, and several found themselves suddenly locked out of their life savings.
A Long and Ugly History
Sadly, the problem didn’t quite end there, as just a month or so later, the firm stated it was going to be filing chapter 11 bankruptcy. This was being done so it could explore ways of remaining in operation without having to worry about what their lenders or what angry customers would do to get their funds back. The company would be free from legal proceedings while ultimately deciding on the best route for moving forward.
Celsius recently held an auction through which it sold some of its digital assets.
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