Wallets linked to former Celsius CEO Alex Mashinsky reportedly sold 90,000 Celsius (CEL) tokens for $480,000, blockchain analytics firm Peckshield reported Feb. 2.
# degrees celsius CEO #AlexMashinsky Over $60 million made in token sale in so-called Ponzi scheme $CEL @azcoinnews https://t.co/9XTKrPjMm2
— AZCoin News (@azcoinnews) February 14, 2023
The tokens sold came from the “0x4833” wallet, which received assets directly from the Celsius web wallet four years ago.
The sales appear to have had a negative impact on CEL – down around 1% over the past 24 hours to $0.51774 at press time.
The court-appointed Celsius independent validator said Mashinsky and other executives at the bankrupt company benefited from the CEL token sale. Mashinski personally earned $68.7 million from the operation, the report said.
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The report added that Celsius used customer funds to back its token and that the business was operating like a Ponzi scheme.
Meanwhile, Alex Mashinsky faces multiple misconduct allegations since his resignation from the company on September 17, 2022.
Mashinsky withdrew $10 million from the company weeks before it froze client funds and filed for bankruptcy, reports show. The former CEO has also been accused of defrauding investors and defrauding customers.
- Court-appointed validator confirms Celsius acts as Ponzi scheme
- At least 5 companies submitted bids for Celisus properties, but most were ‘ignored’
according to AZCoin News