Celsius Network CEO Alex Mashinsky resigned from his position at the struggling crypto lender on Sept. 17.
According to a Sept. 27 press statement, Mashinky said he is resigning his position to focus on a plan that would provide the best outcome for creditors. He continued that he is “willing and available to continue to work with the Company and their advisors to achieve a successful reorganization.”
Part of Mashinsky’s resignation reads:
“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.”
Mashinsky was accused of promoting false information about the safety of users’ funds when the crypto lender was on the brink of bankruptcy.
Celsius immediately announced the appointment of Chris Ferraro as the Chief Restructuring Officer and Interim Chief Executive Officer. Ferraro had spent 18 years at JPMorgan Chase, serving in different capacities before being appointed the Chief Financial Officer at Celsius.
Celsius’ CEL token tanked 7.5% on the one-hour candle as of 14:49 UTC on the back of the news. As of press time, the token was trading at $1.37.
Celsius was one of the first crypto companies to show signs of trouble after Terra’s implosion. The firm first froze withdrawals in June before filing for bankruptcy in July.