- Celsius Network has officially denied all allegations of its CEO trying to flee the US.
- There were rumors that Alex Mashinsky was allegedly stopped by authorities while trying to leave the country.
- The crypto firm claims that it is working round the clock to address client issues.
Celsius Network has officially denied all allegations of its CEO trying to flee the US. This declaration comes following news that CEO Alex Mashinsky was allegedly stopped by authorities while trying to leave the country.
The news of Mashinsky’s attempted escape was first reported by Mike Alfred, former CEO of BrightScope & Digital Assets Data. Alfred claimed that Mashinsky attempted to leave the country via Morristown Airport but was stopped by authorities. However, neither this news nor Alfred’s sources have been verified.
Defending their CEO, the Celsius team states:
“Consistent with our previous messages, all Celsius employees – including our CEO – are focused and hard at work in an effort to stabilize liquidity and operations. To that end, any reports that the Celsius CEO has attempted to leave the U.S. are false.”
The crypto lending firm has been weathering troubled waters for the past couple of weeks. In the mid of this month, Celsius had announced that it was pausing all withdrawals, swaps, and transfers between accounts due to “extreme market conditions.” With rumors of its insolvency floating, the loan firm claims that it has been working round the clock to address client issues.
@CelsiusNetwork team is working non-stop. We’re focused on your concerns and thankful to have heard from so many. To see you come together is a clear sign our community is the strongest in the world. This is a difficult moment; your patience and support mean the world to us.— Alex Mashinsky (@Mashinsky) June 15, 2022
Notably, The Wall Street Journal reported earlier last week that Celsius had hired restructuring attorneys to help manage its financial crisis. There were also speculations of the Celsius board considering removing Mashinsky from the CEO position.
On the bright side, the firm has started repaying clients to regain liquidity and re-open withdrawals. According to reports, Celsius repaid interest-yielding DeFi service Compound Finance with $10 million worth of the DAI stablecoin. However, Celsius is not the only crypto firm that is reeling under market pressure.
Crypto hedge fund Three Arrows capital and Babel Finance are also in similar situations. Although the market has picked up slightly since its terrifying bloodbath this month, major crypto firms are still struggling to deal with the aftermath of a bleeding market.