Crypto lender Celsius CEO Alex Mashinsky resigns from his post

In a statement, Mashinsky 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,” reported Reuters.

Further, Mashinsky said he remains committed to helping the company develop and promote a plan to return deposits to customers.

Mashinsky has worked for nearly 18 years at JPMorgan Chase & Co. before Celsius.

In July, Celsius initiated voluntary Chapter 11 proceedings to provide the company with the opportunity to stabilize its business and consummate a comprehensive restructuring transaction that maximizes value for all stakeholders.

The crypto lender halted its withdrawals and transfers for about 1.7 million customers in June due to extremely volatile market conditions.

As of July 13, 2022, Celsius’s liabilities are about $5.5 billion, and assets are valued at approximately $4.31 billion. Thereby, the company has a deficit of $1.19 billion on its balance sheet.

In the latest update about the proceeding, Celsius on September 15 said, “Celsius has been constructively engaging with the Unsecured Creditors Committee and U.S. Trustee to make meaningful progress on our efforts to maximize value for all customers and ensure continued transparency in our case.”

The next Court hearing of Celsius is scheduled for October 6 and October 7, 2022. The first of these hearings will focus on several matters, including approval for certain key elements of the Claims process. At the October 7th hearing, the crypto lender hopes to advance discussions regarding the reopening of withdrawals for certain of its Custody and Withhold account holders with the other stakeholders.

Alex Mashkinsky and S. Daniel Leon co-founded Celsius in 2017. The New Jersey-headquartered crypto lender has offices in four countries and operates globally. The company facilitated lending and borrowing in cryptocurrencies for investors.