Troubled crypto lending agency Celsius is placing their finest foot ahead to get better operations alongside CEO Alex Mashinsky, who at present stays within the United States, 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 Network.
The consultant informed Cointelegraph on Monday that the agency continues engaged on restoring liquidity, stating:
“All Celsius employees — including our CEO — are focused and hard at work in an effort to stabilize liquidity and operations. To that end, any reports that the Celsius CEO has attempted to leave the U.S. are false.”
Celsius’ assertion got here shortly after Mike Alfred, co-founder of the crypto analytics agency Digital Assets Data, took to Twitter on Sunday to declare that Mashinsky tried to depart the nation final week by way of 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 moment whether he was arrested or simply barred from leaving,” he added.
Alfred’s claims adopted a large GameStop-like “short squeeze” of Celsius, with Celsius’ native token Celsius (CEL) leaping 300% in a single week by June 21. CEL value additionally abruptly rallied greater than 600% on June 14, with analysts attributing the occasion to an change glitch or liquidation of brief merchants.
At the time of writing, CEL is buying and selling at $0.741, down round 5% over the previous 24 hours, in keeping with CoinGecko. Celsius’ native token remains to be up greater than 160% over the previous 14 days.
Some business observers within the crypto group have expressed skepticism about Alfred’s tweets about Mashinsky, with many contemplating his allegations as FUD.
If @Mashinsky tried to depart the nation this week, why are you reporting it now precisely when the CEL value goes down? Seems very coincidental Mike Alfud. And why no mainstream media or crypto media is reporting this? #CelShortSqueeze https://t.co/ynJbzWib9o
— Otis — #CelShortSqueeze ©️ ⚡️ (@otisa502) June 27, 2022
As beforehand reported by Cointelegraph, Celsius formally introduced that it might 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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According to some analysts, Celsius’ liquidity points ought to be attributed to shortcomings of the present crypto lending mannequin on the whole, as different lenders available in the market have confronted related issues not too long ago.
Celsius has been working laborious to repair the results 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 supplied to help the community by deploying a restoration plan.