Celsius CEO Alex Mashinsky resigns; CEL tanks
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Celsius Network CEO Alex Mashinsky resigned from the struggling crypto lender on September 17.
According to a September 27 press release, Mashinky said he was stepping down to focus on a plan that would provide the best outcome for creditors. He went on to say that he “is willing and ready to continue to work with the company and its advisors to achieve a successful restructuring.”
Part of Mashinsky’s resignation letter reads:
“I regret that my continued tenure as CEO has become more and more of a distraction, and I am deeply sorry for the difficult financial situation that members of our community are in. Since the hiatus, I have worked tirelessly to assist the Company and its advisors to present the Company with a viable plan to return the coins to creditors in the fairest and most efficient manner.”
Mashinsky was accused of spreading false information about the safety of users’ funds while the cryptolender was on the verge of bankruptcy.
Celsius immediately announced the appointment of Chris Ferraro as Restructuring Director and Interim CEO. Ferraro had spent 18 years at JPMorgan Chase in various roles before being appointed CFO of Celsius.
Celsius’ CEL ticker fell 7.5% on the hourly candle at 14:49 UTC on the back of the news. At press time, the token was trading at $1.37.
Celsius was one of the first crypto companies to show signs of trouble after the Terra collapse. The company first froze withdrawals in June before filing for bankruptcy in July.