Celsius, a disgraced cryptocurrency lending firm, is making every effort to resume operations alongside its CEO, Alex Mashinsky, who is currently still in the United States, the company has stated.
A spokesperson for Celsius has denied rumors that the CEO of the company tried to flee the United States last week in the midst of the current Celsius Network liquidity crisis.
The representative told Cointelegraph on Monday that the company continues to work to restore liquidity, stating:
“All Celsius employees – including our CEO – are focused and working hard in an effort to stabilize liquidity and operations. To that end, any news that the Celsius CEO has attempted to leave the United States is false.”
Celsius’s statement came shortly after Mike Alfred, co-founder of cryptocurrency analytics firm Digital Assets Data, will take to Twitter on Sunday to say that Mashinsky tried to leave the country last week through the Morristown airport in New Jersey.
Citing an anonymous source, Alfred claimed that the CEO of Celsius was trying to go to Israel. “It is not clear at this time if he was detained or simply banned from leaving,” he added.
Alfred’s claims came following a massive GameStop-like “short squeeze” in which Celsius’s native token (CEL) soared 300% in a week to June 21. The price of CEL also surged more than 600% on June 14, with analysts attributing the event to an exchange failure or liquidation of short traders.
At the close of this edition, CEL is trading at USD 0.741, which represents a decrease of 5% in the last 24 hours, according to CoinGecko. The native Celsius token is still up more than 160% in the last 14 days.
Some commentators in the crypto community have expressed skepticism about Alfred’s tweets about Mashinsky, with many viewing his accusations as FUD.
If @Mashinsky attempted to leave the country this week, why are you reporting it now exactly when the CEL price is going down? Seems very coincidental Mike Alfud. And why no mainstream media or crypto media is reporting this? #CelShortSqueeze https://t.co/ynJbzWib9o
— Otis — #CelShortSqueeze ©ï¸ âš¡ï¸ (@otisa502) June 27, 2022
As previously reported by Cointelegraph, Celsius officially announced that it was going to “pause all withdrawals, exchanges, and transfers between accounts” on June 13. US regulators subsequently launched an investigation into Celsius for freezing multiple accounts on the platform.
According to some analysts, Celsius’s liquidity problems should be attributed to the shortcomings of the current cryptocurrency lending model in general, since other lenders in the market have faced similar problems recently.
Celsius has been working hard to fix the fallout from the platform’s liquidity crisis, reportedly hiring advisors and restructuring consultants to help the platform manage a potential bankruptcy filing. On June 18, Celsius’s main investor, BnkToTheFuture, and its co-founder, Simon Dixon, offered to help the network by implementing a recovery plan.
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