Alex Mashinsky, founder and CEO of bankrupt crypto lender Celsius Network, steps down, saying it has become “a distraction”.
“With immediate effect, please accept my resignation as CEO of Celsius Network Ltd, as well as my directorships and other positions in each of its direct and indirect subsidiaries, with the exception of my position as Director at Celsius Network Ltd. Mashinsky wrote in a resignation. letter. “I regret that my continued role as CEO has become an increasing distraction, and I am truly sorry for the financial hardship our community members are facing.”
Members of Celsius’ Board of Directors have separately announcement the appointment of Chris Ferraro as interim CEO and Chief Restructuring Officer. Ferraro had previously served as the company’s chief financial officer. Before Celsius, Ferraro spent nearly two decades at JPMorgan Chase
Mashinsky founded Celsius in 2017, making it a major cryptocurrency lender. Celsius accepted deposits and made loans with much higher interest on those deposits than available at conventional banks.
In June, shortly after the cryptocurrency market implosion, Celsius suspended all withdrawals and filed for bankruptcy the following month, saying it owed clients nearly $4.7 billion in crypto. According to Celsius documents, it had 1.7 million customers, including 300,000 with accounts worth more than $100.
Mashinsky has submitted his resignation letter, effective immediately, to Celsius’s board of directors, according to an announcement by his lawyers on Tuesday.