Other
Reading time: ~2 m
The CEO of crypto-lending platform Celsius Network, Alex Mashinsky, has submitted his resignation, effective immediately. This was reported in a press release.
“I will remain focused on helping the community come together around a plan that delivers the best outcome for all lenders. I have been doing this since the company filed for bankruptcy,” said Mashinsky.
Celsius, one of the largest centralized landing services, offered retail clients the opportunity to generate passive income on crypto assets. Representatives of the company compared this product with high-risk interest-bearing bank accounts. Subsequently, the company had problems with regulators.
In June, the crypto lending platform suspended withdrawals, exchanges, and transfers between accounts. Later, a “hole” was discovered in its balance sheet for $1.2 billion.
In July, Celsius and certain affiliates filed for Chapter 11 bankruptcy.
The platform presented a business reorganization plan focused on using the income of the mining subsidiary to pay off the claims of creditors.
In August, the US Office of Trustees said there were “numerous questions” for the firm’s management. Prior to this, the Financial Times reported on the intervention of the CEO of the platform, Alex Mashinsky, in the implementation of the trading strategy, which cost “millions of dollars.”
In September, Mashinsky unveiled a plan to bail out the company from bankruptcy, according to media reports.
In the same month, the company filed a request to sell stablecoins.
ForkLog previously reported that Celsius is considering issuing wrapped tokens as part of the platform’s restructuring plan.
#Alex #Mashinsky #steps #CEO #Celsius #Network
