Celsius CEO Alex Mashinsky Resigns Amid Tumultuous Bankruptcy Proceedings

On Tuesday, September 27, 2022, Celsius Network CEO Alex Mashinsky submitted a letter of resignation from the company. Mashinsky added that he still plans to help the embattled crypto lender “achieve a successful reorganization.”

After Celsius paused withdrawals on June 12, 2022, over a month later the company filed for Chapter 11 bankruptcy protection. Just recently, leaked audio from Celsius executives suggested the firm might try to leverage an IOU crypto to pay investors back. Three days following that report, Celsius Network CEO Alex Mashinsky told the public in a press release that he has resigned from his post.

“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,” Mashinsky said in a statement released on Tuesday. “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.”

The Celsius founder added:

Since the pause, I have worked tirelessly to help the company and its advisors put forward a viable plan for the company to return coins to creditors in the fairest and most efficient way. I am committed to helping the company continue to flesh out and promote that plan, in order to help account holders become whole.

The crypto lender Celsius has been dealing with ongoing bankruptcy proceedings as many creditors are itching to recoup losses. During the first week of September, the company sought to reopen withdrawals for select customers, and last week a court-appointed examiner was added to the case to comb through the crypto lender’s financial paperwork.

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