Celsius Network LLC, a cryptocurrency lending company that has been recently subject to state and federal scrutiny, has hired Rod Bolger to become their new Chief Financial Officer. After the Wall Street Journal reported the news, Celsius CEO Alex Mashinsky confirmed it over Twitter. The representatives of the company declined to comment beyond its confirmation.
Mr. Bolger has spent more than ten years working for Canada's largest bank, the Royal Bank of Canada, most recently as its CFO. Previously, he was the CFO of Bank of America's global technology and operations unit. According to reports, Mr. Bolger officially started working at Hoboken, New Jersey-based Celsius, on Monday. He succeeded the interim CFO Cohen Pavon, who stepped in the position after the previous CFO was named in Israel in a money-laundering investigation.
As of February 11, Celsius holds more than $20.4 billion in cryptocurrency assets with a user base of 1.6 million. Although it's not a bank, its decentralized finance services have attracted billions of dollars in investor deposits by promising much better yields than traditional savings accounts. Depending on what cryptocurrency you are depositing, Celsius offers annual returns as high as 17.85%.
Celsius Network LLC has also made investments in cryptocurrency miners like Luxor Technology Corporation and Rhodium Enterprises to diversify its revenue sources. In November, the privately held company closed its Series B funding raising $750 million. Investors like WestGap Group LLC and Caisse dépôt et placement du Québec participated in the round, giving Celsius a valuation of $3.5 billion.
Mr. Bolger will lead the crypto lender through its next development phase, as stated by CEO Alex Mashinsky. The company is looking to benefit from the seasoned CFO of one of the world's largest banks. In one of Mr. Bolger's recent comments, he stated joining the company to develop technology and financial services. In addition, the new CFO wants to help provide a financial and governance framework for financial services that are yet to be fully sanctioned by the regulators.
Earlier this week, Celsius competitor BlockFi Incorporated agreed to pay the Securities and Exchange Commission a $100 million penalty. There has been harsh scrutiny of crypto-lending platforms by regulators, and Celsius is also on the list. While crypto lending provides a lucrative yield, you should always do your research and select the best option for you. Try our detailed reviews on the most popular DeFi and CeFi platforms and see how they compare against each other.