Market Analysis

Celsius Denies CEO Mashinksky Tried to Leave U.S.


The company has countered reports that emerged on social media yesterday.

Key Takeaways

  • Celsius has denied reports that its CEO, Alex Mashinsky, attempted to leave the United States this week.
  • On Sunday, reports that Mashinsky had attempted to leave the U.S. via a New Jersey airport began to circulate.
  • Celsius is facing a liquidity crisis: it closed withdrawals over two weeks ago and is being investigated by regulators.

Celsius has denied that its CEO, Alex Mashinsky, attempted to leave the U.S. this week amidst the company’s liquidity crisis.

Celsius Denies CEO’s Departure

In a statement sent to various news sites, Celsius said that “All… employees including our CEO are focused and hard at work in an effort to stabilize liquidity and operations.”

It specifically added that “any reports that the Celsius CEO [Alex Mashinksky] has attempted to leave the U.S. are false.”

On Sunday, Mike Alfred—founding CEO of the crypto analysis firm Digital Assets Data—claimed that Mashinsky had attempted to leave the United States via Morristown Airport in New Jersey.

Alfred said that Mashinksky was stopped by authorities at the airport. He said that it was not clear whether the CEO “was arrested or simply barred from leaving,” but speculated that Mashinksky had likely “been contacted by the FBI already.”

Though there have been no other reports that the FBI is investigating Celsius and its employees, the firm is under investigation by at least four state regulators. As such, Mashinsky has a plausible motive to leave the country if he intends to avoid participating in those investigations.

Still, with a denial from Celsius and no other accounts matching Alfred’s claims, there is little evidence that Mashinsky attempted to leave the country or has personally been apprehended.

Celsius Withdrawals Are Still Closed

Celsius suspended withdrawals, transfers, and swaps on Sunday, June 12, citing extreme market conditions as an issue.

The company’s inability to redeem its customers’ balances has continued for more than two weeks with no end in sight.

Some reports indicate that Celsius has brought in legal consultants to help it prepare for potential bankruptcy filings. Others suggest that Goldman Sachs could buy Celsius’ assets.

It is unclear whether either course of action would help users gain access to their funds, or if those actions would lead to a longer settlement process between Celsius and its users.

It is also possible that Celsius could make a recovery on its own by adjusting its investments to gain more liquidity—undoubtedly the best outcome for its customers.

Disclosure: At the time of writing, the author of this piece owned BTC, ETH, and other cryptocurrencies.

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