Mashinsky Is Out: Celsius CEO Resigns
Alex Mashinsky submitted a letter of resignation to the troubled crypto lender Tuesday.
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Celsius filed for Chapter 11 bankruptcy in July.
Mashinsky Steps Down From Celsius
Alex Mashinsky has resigned as Celsius’ CEO.
A Tuesday press release announced that Mashinsky had stepped down from the position with immediate effect.
“I elected to resign my post as CEO of Celsius Network today. Nevertheless, I will continue to maintain my focus on working to help the community unite behind a plan that will provide the best outcome for all creditors – which is what I have been doing since the Company filed for bankruptcy,” Mashinsky said.
Mashinsky added that he was “very sorry” about the financial struggles Celsius customers are facing in the fallout from its collapse earlier this year. The crypto lender memorably froze customer withdrawals in June as it faced insolvency issues when the market crashed. It was one of several crypto giants to suffer during a weeks-long crypto liquidity crisis; the events also saw Three Arrows Capital and Voyager Digital go bust (Celsius also lent funds to Three Arrows before the hedge fund went bankrupt). Celsius filed for Chapter 11 bankruptcy filing on July 13. Customers who had deposited funds to the firm found that they were unable to withdraw their assets as the firm went bankrupt; it’s since announced a recovery plan but customers are yet to be reimbursed.