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- Celsius CEO Alex Mashinsky reportedly used customer funds to pump CEL.
- In January, Mashinsky sold $100 million and lost $60 million as the market rebounded.
- Celsius insiders are likely to be prosecuted for mishandling customer funds.
Twitter user Aaron Bennett tweeted how Celsius CEO Alex Mashinsky utilized customer funds to manipulate the price of CEL. According to the details from his recent tweet, the total amount of CEL tokens purchased by Celsius from 2019 to 2022 exceeded $500 million.
"The total amount of #CEL tokens purchased by #Celsius… from 2019 to 2022 exceeds $500 million."Alex sold $51 million of CEL from 2019 to 2022. pic.twitter.com/g3GXTLNUw2— Aaron Bennett (@AaronDBennett) February 15, 2023
Bennett tweeted about the doings, stating that Celsius utilized customer deposits so that the insider could cash out. He also reported that Mashinsky sold $51 million of CEL from 2019 to 2022.
Bennett also pointed out that Mashinsky sold $100 million worth of bitcoin on January 24, 2022. However, the market rebounded after the short spike, which caused $60 million in losses. Benett also said that it sounded hedge fund-y to him.
On January 24th, Alex sold $100 million.The market went up.They lost $60 million.Sounds hedge-fund-y to me. #Celsius pic.twitter.com/K6ZcMsK78u— Aaron Bennett (@AaronDBennett) February 15, 2023
Celsius insiders will be prosecuted for utilizing customers’ funds to buy CEL and cashing out millions of dollars. Bennett also highlighted that there is no proof of Alex investing in CEL ICO. He also mentioned that Mashinsky got rich from pumping shitcoin CEL and sold it while he claimed that never did.
The Twitter user also reported that the regulators are planning to liquidate all customer cryptocurrencies to USD if there is no recovery plan. 2022 was a year of cryptocurrency meltdowns that witnessed the fall of cryptocurrency behemoths, including Terra and the FTX.
The aftermath of Terra’s fall definitely had its ripples across the market as Celsius filed for Chapter 11 bankruptcy on July 13. The cryptocurrency lender froze customer accounts and paused withdrawals, swaps, and transfers, citing extreme market conditions. However, it was later revealed that Celsius mishandled customer funds and dug its own grave.
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