Last Updated: 28 September 2022
The CEO of crypto money lender Celsius Network has resigned. So reports a New York law firm in press release.
Malaise with Mashinsky
At issue is Alex Mashinsky, who had been at the helm of the crypto bank for years. He states:
“I have chosen to step down as CEO of Celsius Network today. Nevertheless, I will maintain my focus on helping the community with the plan that will yield the best outcome for all creditors – which I have done since the company filed for bankruptcy.”
In his resignation letter, Mashinsky expressed regret that he had become a “distraction” to the company’s operations.
Celsius Network CEO Alex Mashinsky steps down from the bankrupt crypto lender. https://t.co/pWoGJJJf17
— Barron's (@barronsonline) September 27, 2022
Celsius paused its entire platform a few months ago. All its users could no longer access their funds and it remains to be seen what they will see from that in the future.
A series of bad investments caused the crypto money lender’s downfall. Rumours are that Mashinsky is partly responsible for the missteps made in early 2022.
The company was silent for weeks before it filed for bankruptcy and announced a $1.2 billion loss.
“I am very sorry about the difficult financial circumstances faced by members of our community,” he said.
Loans and repayments
On-chain data showed that Celsius repaid money on a number of DeFi platforms prior to the bankruptcy filing. It prevented the liquidation of about $440 million worth of bitcoin.
The company recovered all the borrowed money by repaying its debt in full.
To fund its operations, the company obtained permission to sell their bitcoin obtained from mining through the subsidiary.
The court recently asked for a neutral investigator to go through Celsius’ finances. Meanwhile, the company itself announced its intention to return at least $210 million to 58,300 customers.