Celsius creditors to investigate head of firm

Creditors of Bankrupt Celsius Network to Investigate Alex Mashinsky for Misrepresentation A committee representing Celsius Network's creditors will investigate the firm's CEO, Alex Mashinsky. This is stated in the court document. Join our Telegram channel to keep abreast of the main crypto market trends According to the document, the committee plans to “thoroughly investigate the behavior of Mashinsky and other Celsius insiders, including problematic asset placement decisions.” According to the committee, Celsius's false promises about the safety of client assets and high incomes came directly from Mashinsky himself. The committee itself consists of seven people and representatives of organizations that have provided funds to Celsius. Recall that Celsius froze the withdrawal of client assets on June 12, and a month later the company went bankrupt. In June, several analysts said at once that the lending platform has liquidity problems. Celsius itself assured that the suspension of the withdrawal of funds was supposed to help “stabilize liquidity”, but did not specify the details of the incident. Court documents show that the company has more than 100,000 creditors. See also: Former top manager of Celsius announced management fraud around CEL In July, it became known that Celsius Network lost about $ 350 million of client money in the form of unrealized profits on schemes related to trading through decentralized finance (DeFi). From August 2020 to April 2021, Celsius Network entrusted its business partner, KeyFi, with about $534 million in client money, which was used in high-risk investment schemes, Arkham researchers said. Experts came to the conclusion that it was enough for the company to just hold assets without using them in investment schemes in order to get a profit. About why the co-founder of the bankrupt fund Three Arrows Capital considered the collapse of the Celsius Network to be natural - read in the material of the editors of BeInCrypto.