Everything that's happened with Celsius and Alex Mashinsky so far
On July 13, authorities arrested Alex Mashinsky, the former chief executive officer of Celsius Network. He faces criminal and civil charges stemming from his time at the cryptocurrency lending platform, which he helped co-found in 2017.
Though the potential criminal proceedings of Mashinsky and indictment of Celsius are ongoing, the events of this week have been a culmination for many crypto users affected by the collapse of the platform. There were likely issues facing Celsius prior to the crypto market crash of 2022, buthe collapse of Terra put a spotlight on the lending platform’s instability.
Founded in 2017, Celsius Network grew to have more than 1.7 million customers and $25 billion in assets under management at its peak during the global pandemic. However, a crypto market downturn shed light on the firm’s leveraged trading practices and contributed to its downfall.
The price of the Celsius (CEL) token dropped significantly in early 2022 amid stablecoins like Tether (USDT) depegging from the U.S. dollar and the fall of Terra. In June 2022, Celsius announced it would pause all withdrawals to “put Celsius in a better position to honor, over time, its withdrawal obligations,” without providing a definitive timeline.
It’s not looking good, Celsius. The firm’s bankruptcy filing has revealed several complexities in its operations. https://t.co/95asEd2fb9
Celsius filed for Chapter 11 bankruptcy on July 14, 2022, leaving depositors uncertain as to the fate of their assets locked up on the lending platform. Prior to and following the announcement, many U.S. state financial regulators issued warnings to Celsius, with calls ranging from ordering the platform to stop offering securities to alleging Mashinsky made misleading
Read more on cointelegraph.com
