Embattled Celsius CEO Alex Mashinsky Breaks 3-Day Silence – Decrypt

Three days after crypto lender Celsius suddenly announced That it was stopping all customer withdrawals, swaps and transfers, Alex Mashinsky, the CEO of the beleaguered company, has finally broken his silence on the matter.

But Mashinsky gave little comfort to those who were hoping for an answer as to when users would be able to withdraw funds again.

Mashinsky, speaking publicly for the first time since pausing his company’s withdrawal, took to Twitter this afternoon to reassure the Celsius community that the company’s team is working “continuously” on the issue, and the continued patience of customers. To request.

Notably, Mashinsky did not comment on when he aims or expects Celsius to operate again. Twitter users soon requested the embattled CEO for commitments to protect customer deposits, but Mashinsky did not respond further.

Celsisus suspends evacuation on Sunday “stabilize liquidity And after a special cryptocurrency offered on the platform to “protect and protect assets”, of lido Stacked Ether (STETH), began to experience irregularities.

stETH, which represents Ethereum locked on the Ethereum 2.0 beacon chain (which will eventually Sickness With the Ethereum mainnet) is meant to be judged by the value of ETH. For this reason, SETH is often used as collateral on platforms such as Celsius to borrow ETH.

But, as other crypto markets fell apart, stETH recently lost its peg to the heavily volatile ETH. For customers to withdraw ETH, Celsius will sell its stETH stores, If a large number of customers recently concerned about depreciation moved to withdraw, such an event would force Celsius to sell off a large portion of it. $472 million stETH supply, This would further reduce the price of stETH and almost certainly leave the company with insufficient liquidity to meet its ETH obligations to customers.

It is unclear how Celsius will address this issue if stETH is kept separate from ETH (as of writing, stETH is currently trading at .93 ETH). company today Has reportedly hired lawyers to look into restructuring the company If other financing sources cannot be found.

On Sunday, news of withdrawal freeze sent Celsius’s native token 70% falling in an hour, A day earlier, Mashinsky was tweeting too liberally, slamming a Twitter user for spreading ‘fear, uncertainty and doubt’ when he cited rumors that retail investors were running out of Celsius accounts:

The situation seems to have taken the Celsius leadership by complete surprise, and it is unclear when and what measures it plans to take will be made public.

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