The transactions and withdrawals of thousands of Celsius Network users are out on the streets. It concerns a 14,500 pages document which has been made public due to Celsius’ bankruptcy proceedings. The document lists user names, dollar and crypto amounts, the timing of the transactions, and much more.
Strange sensation Celsius
Not everyone in the community is, of course, happy with this outcome of the lawsuit. For a large group of people, this means the definitive end of their financial privacy. Henry de Valence, the founder of Web3 startup Penumbra Labs, tells his 9,000 followers on Twitter that anyone can now basically reveal the full transaction capacity of Celsius users.
seems like, among other things, anyone can now dox all the on-chain activity and addresses of any named celsius user, by matching the dates and exact amounts to transaction datahttps://t.co/5GghqYnh1k pic.twitter.com/sn3x8AExoy
— henry 🌘 (@hdevalence) Oct 6, 2022
The document also states that Celsius executives withdrew more than $17 million from the platform in the run-up to the suspension of recordings. For example, former CEO and co-founder Alex Mashinsky withdrew $10 million from the platform.
Its co-founder Daniel Leon was good for a $7 million withdrawal, while Chief Technology Officer Nuke Goldstein pulled $550,000 from the platform before everything was shut down.
Celsius CEO had to pay taxes
A representative of Mashinsky said his withdrawal was related to paying his income tax. According to this person, Mashinsky has deposited $10 million in the months leading up to the withdrawal, which eventually add up nicely to this amount.
Mashinsky’s family would also have $44 million worth of assets on the platform, which would indicate that they also did not see the problems coming.
Celsius finally suspended recordings for its more than 1.7 million users in July, before embarking on a so-called ‘chapter 11’ bankruptcy procedure in July. In principle, this procedure makes it possible to make a new start. The chance that Celsius will succeed, with a gap of USD 2.85 billion in the budget, seems small.