In a statement by Alex Mashinsky,
"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...”
Earlier today, the CEO of the bankrupt Celsius Network, Alex Mashinsky, submitted his resignation letter to the company’s Board of Directors.
In his letter, Mashinsky stated,
“Effective immediately, please accept my resignation as CEO of Celsius Network Ltd, as well as my directorships and other positions at each of its direct and indirect subsidiaries, with the exception of my director position at Celsius Network Ltd.”
While addressing the Board, Mashinsky expressed his regrets, saying his presence only brought an increasing distraction to Celsius.
He added,
“I am very sorry about the difficult financial circumstances members of our community are facing.”
He is rumored to be responsible for the series of poor trades in early 2022, which led to Celsius’ downfall.
Celsius was one of the first major crypto lenders to freeze withdrawals following the crypto market crash in mid-June. Weeks later, it filed for bankruptcy, stating it reportedly lost about $1.2 billion.
While its bankruptcy filing process was ongoing, Celsius made haste to pay back the money on its different DeFi loans to avoid liquidation on over $440 million collateral in Bitcoin.
Celsius was able to pay back the whole loan and received its funds. It has received approval to sell its mined Bitcoin to pay for operations.
Recall that earlier this month, Vermont officials alleged that Celsius has been insolvent since 2019 and that Mashinsky made false statements to cover the firm’s financial pitfall.
Mashinsky, in his resignation letter, declared his commitment to helping the company stand back on its feet and enable account holders to become whole again.
"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...”
