Cryptocurrency company Celsius denies information about the detention of the head of the platform

A representative of Celsius Network, a cryptocurrency company that provides virtual loans and temporarily blocked transactions on June 13, denied rumors that CEO Alex Mashinsky was trying to fly out of the United States amid a liquidity crisis and possible bankruptcy.

«All Celsius employees and the CEO are focused on stabilizing liquidity and resuming transactions. Any reports that Celsius' CEO has attempted to leave the United States are false,» said a company spokesperson, who was not named.

Yesterday, cryptocurrency investor and analyst Mike Alfred reported that US law enforcement agencies did not allow Celsius CEO Alex Machinsky to leave the country for Israel. Alfred wrote: «This week, Alex Mashinsky attempted to leave the country through Morristown Airport, but was stopped by authorities. It is unclear whether he was arrested or simply prevented from leaving.»

We would also like to remind you that today it became known that Celsius management refused to listen to the recommendations of its own lawyers and declare bankruptcy. Users were asked to support Celsius by enabling the «HODL» mode in their accounts (it allows them to temporarily disable outgoing transactions from their Celsius account).

Celsius, which raised $ 750 million in funding at the end of last year, is an important player in the cryptocurrency lending space. If it declares bankruptcy, all cryptocurrency assets of its clients will be converted into dollars at the current market price, so depositors may lose a huge part of their wealth.