Celsius boss Alex Mashinsky quits amid tumultuous bankruptcy proceedings

Celsius boss Alex Mashinsky quits amid bankruptcy proceedings

On Tuesday, September 27, 2022, Alex Mashinsky, the founder of crypto-lender Celsius, steps down as CEO amidst tumultuous bankruptcy proceedings. He is leaving the reins to Chris Ferraro, the current CFO.

After Celsius halted withdrawals on June 12, 2022, the company filed for Chapter 11 bankruptcy protection in the U.S. a month later. Just recently, audio leaks from Celsius executives suggested that the company may try to leverage an IOU cryptocurrency to pay back investors. Three days after that report, Celsius Network CEO Alex Mashinsky told the public in a press release that he intended to repay the investors he resigned from his position.

Alex Mashinsky stated:

I regret that my continued role as CEO has become an increasing distraction, and I am truly sorry for the difficult financial circumstances facing members of our community.

Celsius then announced the appointment of a new executive following the resignation of Alex Mashinsky.

Chris Ferraro, Celsius’ CFO, now becomes interim CEO and chief restructuring officer.

For some regulators, Mashinsky would have made “false and misleading statements to investors,” including about the financial health of the company. According to the Vermont Department of Financial Regulation, Celsius’ insolvency predates the spring of 2022.

Celsius was one of the first crypto exchange or lending platforms to freeze its services (and ultimately go bankrupt) as a result of falling market prices and the collapse of the Terra ecosystem.

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Article written by: Laeti Marison (SatoshiBelle)

Laeti Marison, also known as SatoshiBelle, is a multifaceted professional with a passion for community management, content creation, and digital marketing. With a diverse background in various roles, Laeti has consistently demonstrated her expertise and dedication in the field. Recognizing her potential, Laeti then took on the responsibilities of a Project and Community Manager at Magna Numeris and Cartam from November 2018 to March 2021. In this role, she showcased her ability to successfully lead projects and foster strong relationships within the community. Currently, Laeti serves as an SEO content writer, Digital Marketing Manager, and co-founder at Trendingcrypto.news magazine, starting from February 2022 till now. Through her expertise in digital marketing and her passion for the crypto industry, she has contributed to the success of the magazine, ensuring its content remains relevant, engaging, and informative.