Celsius Network CEO Alex Mashinsky tendered a letter of resignation to the firm on September 27. Mashinsky continued, saying he still intended to assist the troubled cryptocurrency lender “achieve a successful reorganisation.”
After Celsius halted withdrawals on June 12, 2022, the company filed for Chapter 11 bankruptcy protection more over a month later. Recently, leaked audio from Celsius executives revealed that the company would try to use an IOU cryptocurrency to repay investors. In a press announcement issued three days after the investigation, Celsius Network CEO Alex Mashinsky announced his resignation.
— Alex Mashinsky (@Mashinsky) September 27, 2022
The text of Mr. Mashinsky’s resignation letter reads as follows:
“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. 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’s resignation comes as the business is engaged in bankruptcy proceedings, and the former CEO claimed that by leaving, he would be better positioned to assist all stakeholders in getting the most out of the company in the end.
Celsius has been battling with continuing bankruptcy proceedings, as many creditors are eager to collect damages. The company attempted to restore withdrawals for chosen customers during the first week of September, and a court-appointed examiner was added to the case last week to go over the crypto lender’s financial papers.
Due to exceptionally unpredictable market conditions, the crypto lender froze withdrawals and transfers for about 1.7 million users in June. Celsius’s liabilities are roughly $5.5 billion, and its assets are approximately $4.31 billion as of July 13, 2022. As a result, the company’s balance sheet shows a $1.19 billion loss.
“Celsius has been actively engaged with the Unsecured Creditors Committee and U.S. Trustee to make considerable progress on our efforts to optimise value for all consumers and maintain continuous transparency in our case,” Celsius stated in the most recent statement on the case on September 15.
According to Coinmarketcap Celsius price is $1.54 with a 24-hour trading volume of $17,793,987. Celsius is up 2.67% in the last 24 hours.
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