(Kitco News) - In a breaking story that is still developing, Alex Mashinsky, the CEO of the troubled crypto lending platform Celsius, has submitted his letter of resignation, effective immediately, to the Special Committee of the Board of Directors of Celsius Network Limited.
“Please accept my resignation as CEO of Celsius Network, as well as my directorships and other positions at each of its direct and indirect subsidiaries, with the exception of my director position,” Mashinsky said in the statement.
“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,” Mr. Mashinsky added.
The embattled CEO further indicated that he remains “willing and available to continue to work with the Company and their advisors to achieve a successful reorganization.”
Celsius’ former chief financial officer Chris Ferraro has been appointed as the interim CEO and chief restructuring officer at the company.
The platform was founded in 2017 and at one point became a popular crypto lending protocol as lucrative interest rates attracted all manner of crypto holders looking to earn a little extra yield on their digital assets.
That all changed during the collapse of the crypto market in 2022, where ties to collapsing platforms like Terra/Luna and Three Arrows Capital caught Celsius flat-footed with risky side bets that left it overexposed.
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Amid the mayhem, Celsius paused client withdrawals and subsequently filed for bankruptcy after revealing extreme disparities between credits and debts on the firm's balance sheet.
“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 said. “I believe we all will get more if Celsians stay united and help the UCC with the best recovery plan. I remain willing and available to continue to work with the Company and their advisors to achieve a successful reorganization.”
Following the announcement from Mashinsky, the price of the Celsius Network (CEL) token dropped by 13% before bouncing back by 8%, resulting in a total decline of 5% to trade at $1.40.
