Celsius Ex CEO Dumping CEL Tokens Amid Increasing Legal Troubles

Alex Mashinsky, former CEO of the bankruptcy ridden digital asset lending firm reportedly on the Celsius (CEL) token selling spree. However, Mashinsky is under inspection since his firm filed for bankruptcy and halted the withdrawal. Earlier, it was alleged that Celsius’s top executives withdrew huge amounts of funds just before insolvency.

Celsius ex CEO withdraws USDC

Coffeezilla, an internet investigator exposing scams highlighted that Celsius ex CEO is dumping hundreds of dollars of CEL tokens. The transactions have been done from Mashinsky’s multiple wallets. He has moved around $1 million worth of CEL and USDC tokens over the past day.

The Celsius executives are withdrawing while the firm halted the Custody Withdrawals of the customers.

Earlier, Coingape reported that Alex Mashinsk withdrew around $10 million from the crypto lender. This happened just before the firm froze the customer’s accounts which led it to file for bankruptcy.

It is suggested that ex CEO pulled off the funds after watching customers withdrawing their assets in heavy numbers due to volatile crypto market conditions. However, Celsius went on to freeze withdrawals on June 12. Later, the digital asset lending firm filed for bankruptcy in the same month.

Did Mashinsky know what was coming?

The withdrawal revelations can escalate the probe over Mashinsky decisions. It also highlights the fact that he knew that the bankruptcy ridden firm will be able to return assets to their users.

Meanwhile, Celsius user loss website mentions that an individual named Jacob Benjamin Fite ranked first on the list. He is at a loss of around $40 million. The top 10 individuals cumulatively account for around $220 million in the loss. However, Celsius holds a deficit of more than $1.19 billion on its balance sheet.

On the market side, the Celsius token prices are down by around 8% in the last 24 hours. It is trading at an average price of $0.95, at the press time. CEL is down by 77% on the year to date basis.