Thursday, December 8, 2022

Celsius Network CEO Submits Resignation Letter Amidst Restructuring Process

Alex Mashinsky, the Chief Executive Officer of bankrupt crypto lender Celsius Network has resigned from his position effective immediately. He submitted his letter of resignation to the Special Committee of the Board of Directors of Celsius Network Limited. Mashinsky is also relinquishing his positions in each of the company’s direct and indirect subsidiaries.

Furthermore, he apologized for the troubles which the members of the Celsius Network community are currently passing through. As stated clearly in his letter of resignation, Mashinsky said, 

“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. 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.”

He urged Celsians to remain united in their pursuit of a reorganization plan. Also, Mahinsky encouraged the community members to assist the Unsecured Creditors Committee (UCC) to arrive at the best recovery plan. 

Particularly, he believes that the collaborations will yield better and faster results. To carry on with its restructuring process, Chris Ferraro who is the Chief Financial Officer of the firm has been appointed as the acting CEO and Chief Restructuring Officer. 

Celsius Network Sees Troubling Days

Since June, when the crypto lender first suspended withdrawal on its platform, Celsius Network has been encumbered with several troubles. At first, crypto lending firm Nexos had offered to buy out its assets as a rescue mission. The deal whose price was not disclosed at the time was meant to include the collateralized loan receivables which are secured by corresponding collateral assets and brand assets including its customer database.

A few months after, Ripples Lab showed interest in making a similar offer to the already distraught crypto lender. In a similar fashion, many other crypto firms have considered acquiring the crypto lender. Recently, Celsius Network filed for permission to sell off its stablecoin holdings which are worth $23 million. So far, no response has been gotten from the court.

Victoria Nye
A Blockchain columnist who is enthusiastic about developing a network interface between the real world and the cryptosphere.

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