Former Celsius Network LLC executives withdrew $18 million in cryptocurrencies in the two months before the company filed for chapter 11, according to documents filed Wednesday to the bankruptcy court, WSJ Pro Bankruptcy reported. Alex Mashinsky, the former chief executive of the crypto lender, withdrew $10 million dollars in tokens between May and the bankruptcy filing on July 13, according to the court documents. His lawyer confirmed the size of his withdrawals. Mr. Mashinsky stepped down from his role in late September following a request from Celsius’ creditors. The filings also show that Mr. Mashinsky’s wife Kristine Mashinsky and former chief strategy officer Daniel Leon withdrew over $2 million and roughly $7 million worth of tokens, respectively, during the same period. Representatives for Ms. Mashinsky and Mr. Leon didn’t immediately return a request for comment. Mr. Leon stepped down from his role on Wednesday. Celsius, one of the biggest crypto lending platforms, froze customer withdrawals in June. When Celsius filed for bankruptcy the following month, it said that it owed users $4.7 billion. Thousands of Celsius customers have banded together to try to retrieve the crypto assets in bankruptcy. The company’s creditors committee has a continuing investigation of Celsius, lawyers for the group have said in court. State regulators said that Mr. Mashinsky made false and misleading statements to Celsius customers about the firm’s financial health, and that the company had massive losses going back to 2021.
