Celsius denies allegations on Alex Mashinsky trying to flee US

Troubled crypto lending agency Celsius is placing their greatest foot ahead to recuperate operations alongside CEO Alex Mashinsky, who at present stays in the USA, the corporate has claimed.

A spokesperson for Celsius has denied rumors that the corporate’s CEO tried to flee the U.S. final week amid the continuing liquidity disaster of the Celsius Community.

The consultant instructed Cointelegraph on Monday that the agency continues engaged on restoring liquidity, stating:

“All Celsius staff — together with our CEO — are centered and onerous at work in an effort to stabilize liquidity and operations. To that finish, any stories that the Celsius CEO has tried to depart the U.S. are false.”

Celsius’ assertion got here shortly after Mike Alfred, co-founder of the crypto analytics agency Digital Property Knowledge, took to Twitter on Sunday to claim that Mashinsky tried to depart the nation final week through Morristown Airport in New Jersey.

Citing an nameless supply, Alfred alleged that Celsius’s CEO was making an attempt to go to Israel. “Unclear at this second whether or not he was arrested or just barred from leaving,” he added.

Alfred’s claims followed a massive GameStop-like “short squeeze” of Celsius, with Celsius’ native token Celsius (CEL) jumping 300% in one week by June 21. CEL worth additionally abruptly rallied more than 600% on June 14, with analysts attributing the occasion to an alternate glitch or liquidation of quick merchants.

On the time of writing, CEL is trading at $0.741, down round 5% over the previous 24 hours, in response to CoinGecko. Celsius’ native token continues to be up greater than 160% over the previous 14 days.

Celsius Community token (CEL) 30-day worth chart. Supply: CoinGecko

Some trade observers within the crypto neighborhood have expressed skepticism about Alfred’s tweets about Mashinsky, with many contemplating his allegations as FUD.

As beforehand reported by Cointelegraph, Celsius officially announced that it could be “pausing all withdrawals, swaps and transfers between accounts” on June 13. United States regulators subsequently began an investigation into Celsius as a number of accounts on the community have been frozen.

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In line with some analysts, Celsius’ liquidity points should be attributed to shortcomings of the present crypto lending mannequin typically, as different lenders out there have faced similar problems lately.

Celsius has been working onerous to repair the implications of the platform’s liquidity disaster, reportedly onboarding advisers and restructuring consultants to assist the platform deal with potential submitting for chapter. On June 18, Celsius’ lead investor BnkToTheFuture and its co-founder Simon Dixon offered to assist the network by deploying a restoration plan.