Celsius Network CEO Alex Mashinsky attempted to flee the nation last week, from Morristown Airport in the U.S. with an intention to leave for Israel, according to cryptocurrency analyst and investor Mike Alfred, who tweeted on 27th June.
BREAKING: Alex Mashinsky attempted to leave the country this week via Morristown Airport but was stopped by authorities. Unclear at this moment whether he was arrested or simply barred from leaving. Please contact me if you have more information on this.
— Mike Alfred (@mikealfred) June 27, 2022
The cryptocurrency trading giant halted all withdrawal, exchanges, and trades precisely 2 weeks ago on June 12th, claiming “extreme market circumstances” Following that, the business recruited reorganisation experts and approached authorities to assist it in resolving its troubles. Celsius also stated that it has suspended all types of social participation in order to give its situation more attention.
Celsius, which had over $8 billion in customer debt and $12 billion of assets under administration since May of this year.
Celsius Network has stopped client withdrawal despite Mashinsky’s assurances that the fund was safe. The expert also mentioned that Mashinsky hasn’t said much afterwards and also that the client’s money remains a secret.
Celsius froze withdrawals 2 weeks ago, just days after Alex Mashinsky lied to customers about the safety of their funds. Mashinsky has gone silent and there is no sign that customer funds will be released anytime soon. It's in the hands of the lawyers now, for better or worse.
— Mike Alfred (@mikealfred) June 26, 2022
Celsius CEO Alex Mashinsk halted by authorities
As per cryptocurrency investor Mike Alfred, the CEO tried to leave the United States for Israel via Morristown Airport. He was halted by officials, though, but it’s unknown if he had been arrested or simply banned from going.
Furthermore, the analyst believes Mashinsky has been already approached by the FBI and also that he might be detained, interrogated, and afterwards released.
Alfred believes Masinsky’s instance demonstrates a fault in the “basic rule” of keeping investors’ trust. Celsius sparked widespread market worries in mid-May when its returns began to fall. Investors, according to sources, are no longer involved in helping out the lending network as it exhibits no prospects of recovering its desired status.
Goldman Sachs intends to acquire Celsius
Apart from authorities, the struggling corporation has caught the interest of possible investors. Celsius has received acquisition offers from competitor lenders Nexo and pro-crypto bank Goldman Sachs, among others. Goldman Sachs intends to acquire Celsius for $2 billion from investors.
The Celsius network manages approximately $12 assets worth and lends more than $8 billion to clients. With the possibility of insolvency coming, Celsius Network is likewise acting in a manner that will raise people’s doubts.
According to the current speculation, Celsius’s token (CSL) has decreased by more than 20%, trading at roughly $0.7939 intraday.