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Alex Mashinsky, Celsius Network founder and CEO, is accused of running from the U.S following the incident of liquidity shortage in his firm.
The crypto lending firm halted all its withdrawals, swaps, and transfers, providing “extreme market conditions” as the reason for the action. In order to get assistance in solving these issues, the company also hired restructuring lawyers and contacted authorities.
In addition, the network also declared a pause in all kinds of social engagement to provide its predicament more focus.
It is also interesting to note that just before the announcement of the withdrawal freeze, the CEO was seen calling out Twitter user @mdudas for what he referred to as falsifications. The user said something on the ground that there were rumors of locked accounts on Celsius, which Mashinsky said was “FUD and misinformation,” in a deleted tweet.
Mashinsky again took to Twitter three days after the announcement requesting patience and time from clients and investors.
Mike Alfred, a crypto investor believes that the executive tried to leave the US for Israel through Morristown Airport. However, the authorities stopped him. But, it still is not clear if he was taken into custody or just prohibited from traveling.
Now, the crypto investor speculates that the FBI might have already contacted the CEO and inquired about Celsius’s troubles. Moreover, according to him, there are quite less chances of customers being to redeem the assets soon, he noted that everything is now up to the lawyers, for better or worse.
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COO of fraud prevention firm Netki, Dawn Newton, on the other hand, thinks that Mashinsky is completely safe in Israel as she said he spent a major part of his life there and also served in the Israeli army.
It is also important to note that the US has an extradition treaty with Israel. As per the clause: “An Israeli national may not be extradited except for an offense committed prior to becoming a national.”
Alfred further notes that Masinsky’s case is an example of weakness in the “simple rule” of keeping the faith of the investors. In mid-May, Celsius started drawing huge investor concern when its yields started decreasing. Now, the reports say investors show no interest in bailing out the lending platform as it indicates little signs of bouncing back to its coveted prominence.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
