In a brief corporate statement, Alex Mashinsky, founder and CEO of Celsius Network, has resigned from the firm, effective immediately.
Celsius is one of the crypto firms that grew rapidly providing incredible returns to investors via its crypto lending/yield platform, only to collapse in the fallout from the crypto winter. Celsius is currently going through the bankruptcy process in a voluntary filing this past July. The pursuit of Chapter 11 in the courts followed Celsius halting all withdrawals and effectively shutting down most all operations.
Mashinsky told the Special Committee of the Board of Directors of Celsius Network Limited:
“I elected to resign my post as CEO of Celsius Network today. Nevertheless, I will continue to maintain my focus on working to help the community unite behind a plan that will provide the best outcome for all creditors – which is what I have been doing since the Company filed for bankruptcy. I believe we all will get more if Celsians stay united and help the UCC with the best recovery plan. I remain willing and available to continue to work with the Company and their advisors to achieve a successful reorganization.”
The resignation letter indicated that Mashinsky will still hold his Director position at Celsuis adding that he has “worked tirelessly” to craft a restructuring plan in the “fairest and most efficient way.”
The collapse of Celsius has caused untold thousands of individuals to lose or have their funds locked up and inaccessible. Earlier this month, a document was filed with the courts indicating that Celsius was seeking to allow withdrawals for certain users.
Celsius rose to notoriety on the back of a theme that “Banks are not your friends,” touting its services as bank-like but providing more income. Investors could generate incredible returns of over 18% – until the company shuttered its doors.
The court case is being heard in the United States Bankruptcy Court for the Southern District of New York.