According to a new press release published on Tuesday, Alex Mashinsky, CEO of troubled cryptocurrency lender Celsius Network, has resigned effective immediately. Explaining the decision, Mashinsky wrote:
“I am sorry that my role as CEO has become an increasing distraction, and I am deeply sorry for the difficult financial circumstances that members of our community are facing. Since the hiatus, I have worked tirelessly to help the company and its advisors.” to come up with a viable plan for the company to return the coins to creditors in the fairest and most efficient way.”
Founded in 2017, Celsius Network was a rising star in the crypto lending space, surpassing more than 1.7 million customers, $25 billion in assets under management, and $850 million in accrued interest paid earlier this year. Nevertheless, their fortunes took a drastic turn when the current crypto winter exposed the company’s risky business practices.
As a result, the company halted all consumer withdrawals in June, leaving it with a balance sheet gap of nearly $2.85 billion. Major shareholders, such as the Quebec Pension Fund, lost almost all of their investment in the company. Even Celsius co-founder Daniel Leon declared in court that his capital had “no value.” The company is currently in bankruptcy proceedings.
Previously, Mashinsky has attempted to revive the company by restructuring it to focus on crypto custody. He would also have shared plans to convert his debt into cryptocurrency and airdrop it to creditors. After Celsius collapsed, rumors circulated that Mashinsky tried to flee the United States, which he denied. Mashinsky was voted No. 63 on Cointelegraph’s list of the 100 Most Important People in Cryptocurrency and Blockchain last year.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Keep reading:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.