Celsius Network behind altcoin CEL is in serious trouble due to recent events. In fact, according to recent reports, Celsius Network CEO Alex Mashinsky was on the run last week. Here are the details…
Celsius CEO allegedly tried to escape
Celsius’s suspension of withdrawals over the past few weeks has worried many investors. The problems started after Celsius made a large investment in the Ethereum staking token called stETH. StETH allows people and companies like Celsius to own stakes in the Ethereum Blockchain and earn additional returns through DeFi. However, the sharp drop in the value of crypto assets in May drove the stETH price down. The token has become more liquid.
This made it difficult for Celsius to collect funds for refunds when users wanted to withdraw their money. As we have also reported on Kriptokoin.com, on June 12 Celsius announced that it has stopped withdrawals due to “extreme market conditions”. Since then, the Celsius crisis continues. Most recently, the Celsius Network CEO allegedly tried to escape. Popular crypto investor and analyst Mike Alfred wrote in a series of tweets:
Last minute: Alex Mashinsky tried to leave the country this week via Morristown Airport. However, it was stopped by the authorities. It is currently unclear whether he was arrested or simply banned from traveling abroad. If you have more information on this, please contact me.
Has the CEO been questioned?
According to Alfred’s sources, Mashinsky was planning to go to Israel. Alfred added that although Mashinsky said the funds were safe, Celsius Network had frozen withdrawals for its customers. Since then, Mashinsky has been quiet and there is no indication of when client funds will be released. The crypto analyst also added:
For better or worse, the matter is now in the hands of the lawyers. What I keep thinking is that Mashinsky and the FBI are almost certainly already in touch. He may even have been arrested, questioned, and released. There’s enough here for the feds to want to look into.
Goldman Sachs may buy Celsius Network behind altcoin project
Last weekend, Wall Street banking giant Goldman Sachs reportedly worked with a group of investors to raise $2 billion and buy some of Celsius Network’s troubled assets. However, there has been no official statement from Goldman Sachs for now. Also, nothing is certain enough about whether Goldman will save Celsius. Arthur Hayes, former CEO of BitMEX, said he didn’t believe the news unless Goldman Sachs said it openly. Hayes said that all the “recovery” news is, unless someone actually puts in the money; He added that it was nothing more than a public relations game.
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