According to a new press release published on Tuesday, Alex Mashinsky, CEO of Celsius Network, CEO of the troubled crypto lender, has resigned effective immediately. Explaining the decision, Mashinsky wrote:
“I regret that my continued role as CEO has become an increasing distraction, and I am deeply sorry for the difficult financial conditions that members of our community are facing. Since the hiatus, I have worked tirelessly to assist the Company and its advisors in coming up with a viable plan for the Company to return coins to creditors in the most fair and efficient manner.”
Founded in 2017, Celsius Network has been a rising star in the crypto lending space, having surpassed 1.7 million clients, $25 billion in assets under management and $850 million in cumulative interest paid out earlier this year. However, its fortunes took a drastic turn when the ongoing winter exposed the company’s risky trading practices and leverage.
As a result, the company halted all consumer recalls in June and was left with a budget gap of about $2.85 billion. Notable stakeholders, such as the Quebec Pension Fund, lost nearly all of their investment in the company. Even Daniel Lyon, one of the founders of Celsius, declared his shares “worthless” in court. The company is currently undergoing bankruptcy proceedings.
Previously, Mashinsky tried to revive the company by restructuring it to focus on cryptocurrency keeping. He is also alleged to have shared plans to crypto and airdrop her debts to creditors. After the collapse of Celsius, rumors spread that Mashinsky tried to flee the United States, which he denied. Mashinsky was voted 63rd on Cointelegraph’s list of the Top 100 Crypto and Blockchain People last year.
from San Jose News Bulletin https://sjnewsbulletin.com/celsius-alex-mashinsky-ceo-resigns/
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