Celsius Founder Withdrew $10 Million

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ccording to the Financial Times, Celsius co-founder Alex Mashinsky withdrew $10 million from his crypto lending firm just weeks before it stopped accepting deposits from customers making the outlook for the crypto lender Celsius Network is increasingly bleak. 

According to the Financial Times, a spokesperson for Mashinsky confirmed the withdrawal, but added that he had "$44 million in crypto assets" frozen alongside his clients' funds. 

The Vermont Department of Financial Regulation has fueled concerns about Celsius' high payouts to investors, which critics say look like a Ponzi scheme. 

The agency alleged that "this shows a high level of financial mismanagement and also suggests that, at least at some points in time, yields to existing investors were probably being paid with the assets of new investors."

Jonathan

An editor at Coincrop

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Jonathan is a Coincrop staff writer based in the UK, covering the best rates for cryptocurrency earning and borrowing products. When not at work, he's likely sailing.