Celsius CEO accused of withholding insolvency issues

A crypto journalist by the Twitter handle of Otteroo has accused Celsius Network CEO Alex Mashinsky of not disclosing the extent of investor funds missing.

Celsius Network recently filed for a Chapter 11 bankruptcy, unable to meet withdrawal requests by community members, shortly after freezing withdrawals.

Otteroo made a prediction about the cryptocurrency lender and argued on June 7 that Celsius Network would have become insolvent long before 2022 was over.

Shortly after the bankruptcy proceedings, Otteroo said that the amount of missing user funds is much greater than the $1.2bn shortage the chief executive reported.

In addition, Otteroo is skeptical about the $720m that the company allegedly received from crypto mining.

According to the journalist, the facts of the bankruptcy of Celsius Network must be taken with a grain of salt.

While the crash of the Terra/LUNA market has had an impact on all, Otteroo is inclined to believe that Celsius had unhealthy practices which led to the platform’s downfall.

But Otteroo was even more critical of Mashinsky. According to the journalist, the executive provided untruthful information about the solvency of the company on several occasions.

There has also been a report by The Financial Times that has pointed in the same direction.

Meanwhile, another report by Market Insider said that Celsius turned to FTX CEO Sam Bankman-Fried, asking the CEO for a bailout, which was turned down.

The fallout from the Celsius bankruptcy now could have up to $4.7bn under lock and key, with an unknown number missing.

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Updated: 07/19/2022 — 11:00