Celsius seeks millions from former CEO Machinsky
In the insolvency proceedings surrounding the failed crypto-lending service Celsius, the allegations against former CEO Alex Machinsky are becoming clearer.
In the insolvency proceedings surrounding the failed crypto-lending service Celsius, the allegations against former CEO Alex Machinsky are becoming clearer.
The curators of Celsius and the company's creditors are seeking millions in payments from the former top management of the failed crypto-lending service - including Alex Machinsky, former Celsius CEO, and his wife.
According to a court filing submitted yesterday, Machinsky and Celsius co-founder S. Daniel Leon are among those accused of artificially inflating the CEL token.
They would also have "negligent, reckless, and self-serving investments" when Celsius was already facing insolvency.
For example, shortly before the collapse of his company, Machinsky allegedly transferred $2.8 million to his own wallet, which would violate applicable insolvency laws.
Celsius is also said to have moved a total of $17 million to other companies controlled by Machinsky in the run-up to the company's bankruptcy. The trustee and creditors are now seeking the return of these funds from Machinsky and his alleged accomplices.
According to the complaint's memorandum of claim, the action would allege claims and causes of action against the defendants to recover millions of U.S. dollars withdrawn from the Celsius platform in the months before withdrawals were frozen.
It remains to be seen how Alex Machinsky and co. will respond to the allegations. He gave no comment to Coindesk at Coindesk.
