Celsius CEO Alex Mashinsky Resigns Amid Tumultuous Bankruptcy Proceedings – After halting withdrawals on June 12, 2022, Celsius filed for Chapter 11 bankruptcy protection more than a month later. Recently released audio from Celsius executives revealed the company may attempt to use an IOU cryptocurrency to repay investors. Alex Mashinsky, CEO of Celsius Network, announced his resignation in a press release three days after the publication of that report.
In a statement posted on Tuesday, Mashinsky stated, “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.” “I regret that my continued role as CEO has become a greater source of distraction, and I am very sorry about the difficult financial circumstances members of our community are facing.”
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The founder of Celsius 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.”
Numerous creditors are eager to reclaim their losses from the cryptocurrency lender Celsius, resulting in continuing bankruptcy procedures. During the first week of September, the firm attempted to reopen withdrawals for a subset of customers, and a court-appointed examiner was added to the case last week to review the crypto lender’s financial documents.
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