Celsius CEO

Around mid-June, cryptocurrency lending platform Celsius froze withdrawals for its customers. Since then, CEO Alex Mashinsky has remained silent and there is no sign that clients will ever have access to their funds again. According to a tweet by Mike Alfred, the Celsius CEO attempted to leave for Israel:

“This week, Alex Mashinsky tried to leave the country through Morristown airport, but the authorities stopped him. At the moment, it is unclear whether he was arrested or simply banned from leaving.”

So far, the cryptocurrency community has taken a wait-and-see attitude towards the situation. It has reacted relatively calmly to the news surrounding the events at Celsius. This latest development has only served to increase the fear among some users. 

It is also worth recalling that in 2021, Israeli police arrested Celsius CFO Yaron Shalem as an accomplice of Singulariteam founder Moshe Hogeg, accused of money laundering.

“Now everything is in the hands of lawyers, I don’t know if this is good or bad. I keep thinking that the FBI has almost certainly already contacted Mashinsky. Perhaps he was even captured, interrogated, and released. But in this case, there is enough that the feds will want to study, ” Mike Alfred wrote in his blog.

The other day, it was revealed that Goldman Sachs plans to raise $2 billion to buy Celcius’ assets although nothing has materialized yet. If the embattled company decides to file for bankruptcy, it would pave way for the investment banking giant to buy Celcius’ assets at a “huge discount.” 

Previously, Celsius had hired consulting firm Alvarez & Marsal to advise on restructuring. The company made a similar request to the law firm Akin Gump Strauss Hauer & Feld. It appears that one of the company’s best options at the moment could be filing for bankruptcy.

In a related development, Ledger chief development officer Ian Rogers reported that the company’s sales “jumped 4.5 times in a day on the news of the Celsius problems” and still remain high. It seems people are already searching for safer lending and storage platforms.

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