Celsius Network | Millions were recouped by employers before the failure

Celsius Network |  Millions were recouped by employers before the failure

The Celsius Network failure cost Caisse depot et placement du Quebec (CDPQ) hundreds of millions, but the company’s top executives did not walk away empty-handed. Before the cryptobank froze the deposits of 1.7 million customers last June, they withdrew the equivalent of at least US$24 million over the course of a few weeks.

Published yesterday at 3:59 pm.

Julian Arsenault

Julian Arsenault

Alex Mashinsky, who recently stepped down as CEO, quietly stepped down as chairman from April to June, co-founder Daniel Lyons — as the company’s finances worsened due to the fall in cryptocurrency prices. Technical Officer Newk Goldstein. Mr. Mashingi alone has recovered about US$13 million.

The details are contained in a large document filed Thursday in a New York court. Celsius Network has been under US bankruptcy protection since July 13.

“We see large withdrawals in April, after consulting the document, underlines Saido Tico, Professor of the Department of Accounting Sciences at ESG UQAM. It looks like insider trading. [Les hauts dirigeants] Must have known it was going to go off the rails, and looks like they prepared. »

The Celsius Network did not respond to questions on Thursday Pres.

More questions

The content of the report has fueled controversy that has surrounded the Celsius network for months. Cryptobank took a surprise turn last June by freezing all of its customers’ assets. Within 24 hours of the announcement of the result, Mr. Mashinsky said that there is no need to worry about such a situation.

Screenshot from Twitter

Back in May of cryptocurrencies, Alex Mashinsky gave the impression that everything was going like clockwork on the Celsius network.

Additionally, the company’s business model has been described by a US government agency as similar to a Ponzi scheme. A census Pres Mr. Mashinsky’s background proved tainted and the contractor’s claims inaccurate.

The Celsius Network collected cryptocurrency deposits. It provided loans and interest, which in some cases could reach 17%. Falling cryptocurrency prices since the beginning of the year plunged it into a liquidity crisis, paving the way for a bankruptcy filing. This failure forced CDPQ to write off a 200 million investment made in the fall of 2021.

A “Disappointment”

Calculations done Pres That time includes withdrawals by executives and their related companies. Bitcoin, Ether and the CEL token – the token of the Celsius network – are among the cryptocurrencies recovered by MM. Mashinsky, Leon, and Goldstein. More than half of the 24 million US were withdrawn in May.

Mr. Mashinsky withdrew the equivalent of US$5 million on May 27. Very active on social networks at the time, the latter ignored Cryptobank’s problems by posting on Twitter.

“They were disappointed, Mr.me Dicko. They displayed a very positive attitude even though they knew something was probably wrong. However, they were in a better position to know what was really going on. »

The CDPQ did not want to comment Thursday on the actions taken by MM. Mashinsky, Leon, and Goldstein. After admitting its error regarding the Celsius network last August, Quebecers’ woolly socks have not made other public outings. Its due diligence process is still subject to unanswered questions.

The Caisse wants to be represented in the group involved in the bankruptcy proceedings, along with other Celsius network partners. Its purpose is to recover money if some of the cryptobank’s assets are liquidated.

Learn more

  • 10 months
    Time elapsed between the announcement of CDPQ’s investment in the Celsius network and confirmation that the investment was listed.


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