Celsius Network CEO resigns

Alex Mashinsky will continue to work on the reorganization of the company

28.09.2022 - 10:15

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2 min

What’s new? On September 27, the CEO of the bankrupt crypto lending platform Celsius Network, Alex Mashinsky, tendered his resignation. According to a letter obtained by BusinessWire, this decision took effect immediately. Mashinsky also said that he will continue to work with the company and its advisors to carry out a successful reorganization.

BusinessWire’s material

What else did Mashinsky add? In a statement to the Celsius Board of Directors, the former head of the company asked that he be removed from all management positions, including those at subsidiaries, except as a director position at Celsius Network Ltd.

“I regret that my continued role as CEO has become an increasing distraction, and I am very sorry about the difficult financial circumstances members of our community are facing,” Mashinsky’s letter reads.

Earlier, Mashinsky proposed a new plan to restructure the company, under which Celsius would focus on digital asset custody services and become a crypto custodial platform. The project was given the working name Kelvin.

In early September, Celsius filed for a $50 million refund to customers. The funds are not part of the bankruptcy estate. In August, Celsius’ creditor committee began investigating the platform’s CEO and insiders. The purpose of the committee is to maximize recovery to customers and to explore options for restructuring or selling the business.

To find out what caused the bankruptcy of Celsius, one of the largest crypto lenders, see GetBlock Magazine’s feature.

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