2022 is likely to go down in history as one of the most detrimental years for the crypto-space. While adoption was the leading stage, losses followed. In addition, the downfall of Terra, as well as the Celsius network, contributed to the turmoil in the market. Just as the crypto-verse was recovering, Celsius decided to pull the plug on his withdrawals, citing “extreme market conditions”. The sudden announcement caused the community to call out the platform for insolvency.
The CEO of the Celsius network, Alex Mashinsky, rejected these rumors and suggested that the funds are safe and that the platform worked 24 hours a day to solve the problem. However, things seem to be taking a whole new turn. Earlier today, crypto analyst Mike Alfred took to Twitter to reveal that Mashinsky had tried to flee the country.
In a recent thread, Alfred said,
As mentioned in the above tweet, it remains uncertain whether the Celsius CEO has been arrested or released to leave the country. So do these allegations. However, Alfred’s sources claim that Mashinsky was on his way to Israel.
On top of that, Alfred talks about Celsius’ whole fiasco of interrupted withdrawals and Mashinsky’s radio silence. said,
“Celsius froze withdrawals 2 weeks ago, just days after Alex Mashinsky lied to clients about the safety of their funds. Mashinsky has fallen silent and there is no sign that client funds will be released anytime soon. It is now in the hands of the lawyers, for better or for worse. ”
While investors continue to drown in fear, Celsius was out there hiring experts to file for bankruptcy. The network apparently welcomed restructuring advisers from the firm Alvarez & Marsal.
Celsius [CEL] and the determining price thereof
As the bear market did not do enough, Celsius’ native crypto, CEL suffered a massive blow. The altcoin remains nearly 90 percent below its high of $ 8.02.
At the time of printing, CEL was trading at a low of $ 0.8276 with an 18 percent drop over the past 24 hours. These figures were not so bad as the asset fell to a low of $ 0.155 earlier this month.