A new press release released Tuesday says that Alex Mashinsky has resigned as CEO of the troubled crypto lender Celsius Network. Mashinsky writes, “I am very sorry for the difficult financial situations members of our community face.”
Mashinsky explained the decision by writing:
“I regret that my role as CEO has become a greater distraction and I am deeply sorry for the financial difficulties members of our community are experiencing.” Since the pause, my tireless efforts have been to assist the company’s advisors in putting together a plan that would allow the Company to return the coins to its creditors in the most fair and efficient manner.
Celsius Network was founded in 2017 and quickly rose to prominence in crypto-lending.
It had over 1.7 million customers, $22.5 billion in assets under management and $850,000,000 in cumulative interest. But, the company’s fortunes changed dramatically after the ongoing crypto winter exposed its risky and leveraged trading methods.
The company stopped all consumer withdrawals in June, leaving a balance sheet gap of 2.85 billion. Quebec Pension Fund was one of the most prominent stakeholders to lose nearly all of its investment in the company. Daniel Leon, Celsius’s co-founder, declared in court that his equity was “worthless. The firm is currently in bankruptcy proceedings.
Mashinsky had previously tried to save the company and restructure it to concentrate on crypto custody. According to reports, he also shared plans to convert the company’s debt into crypto and drop them off to creditors. Rumours circulated that Mashinsky attempted to leave the U.S. after Celsius’s collapse. He denied. Mashinsky was voted #63 in Cointelegraph’s Top 100 Crypto and Blockchain People List last year.
