Alex Mashinsky Announces His Resignation From Celsius

  • Celsius filed for bankruptcy in July, days after it paused withdrawals following a collapse.
  • Several employees of the crypto lender blame Celsius’s failure on recklessness and poor leadership decisions.
  • Former Celsius boss Alex Mashinsky made various attempts to revive the company, including turning Celsius’ debt into a new cryptocurrency.

Alex Mashinsky, CEO of the cryptocurrency company Celsius Network, which filed for bankruptcy in July, has announced his decision to step down as the Chief Executive Officer of the embattled crypto firm. According to a statement released by the firm, Chris Ferraro, Celsius’s chief financial officer, will take over as Alex’s interim replacement.

Alex, 56, has come under fire for his leadership of the crypto lending firm. Many community members and past workers believe the former Celsius boss was directly to blame for the company’s woes. In a separate statement, Alex expressed his remorse over the difficult few months the community has faced. He 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.

Celsius’s fame skyrocketed as it became one of the most prominent crypto lenders. The company operated as a form of crypto bank, offering huge interest rates to users who deposited their funds. Things looked bright for the company as it amassed more than 1.7 million customers and $25 billion in assets under management. Celsius also had $850 million in cumulative interest paid earlier this year. But the company’s good run came to a shocking and disastrous end this spring after the market crashed.

Celsius later announced that it was halting withdrawals and eventually filed for bankruptcy in New York. The company’s collapse joined a list of other high-profile failures, such as 3AC, Voyager, and Terra. Celsius claimed in legal documents filed this summer that it owed customers $4.7 billion. In addition, rumors emerged that Celsius CEO, Alex attempted to exit the United States following the firm’s collapse. He, however, denied such claims.

According to former employees and company papers, the cryptocurrency company reportedly experienced a number of internal blunders prior to its recent problems. Several workers portrayed a picture of recklessness, disarray, and purported market manipulation.

Alex reportedly made efforts to revive the company by reorganizing it to concentrate on crypto custody. Notably, he disclosed plans to airdrop cryptocurrency to creditors in exchange for the company’s debt.

Lawrence Woriji
Lawrence Woriji Verified Author

I have covered some exciting stories in my career as a journalist and find blockchain-related stories very intriguing. I believe Web3 will change the world and want everyone to be a part of it.

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