The chief executive of the crypto-lending platform Celsius Network, Alex Mashinsky, has submitted his resignation effective immediately. The news came in a press release.
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\”I will stay focused on helping the community unite around a plan that will deliver the best outcome for all creditors. I have been doing this since the company filed for bankruptcy,\” Mashinsky said.
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Celsius, one of the largest centralized lending platforms, offered retail clients the chance to earn passive income on crypto assets. Company representatives compared this product to high-risk savings accounts at banks. Subsequently, the company ran into regulatory troubles.
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In June the crypto-lending platform paused withdrawals, exchanges and transfers between accounts. Later a hole in its balance sheet was found worth $2.85 billion.
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In July, Celsius and some affiliated entities filed for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code.
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The platform presented a plan to reorganize the business, oriented toward using the income of the mining subsidiary to satisfy creditors’ claims.
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In August, the U.S. Trustee’s Office said there were “numerous issues” with the company’s leadership. Earlier, the Financial Times сообщила о вмешательстве Mashinsky in implementing the trading strategy, which cost “millions of dollars”.
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In September, Mashinsky unveiled a plan to rescue the company from bankruptcy, according to media reports.
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In the same month, the company filed for the sale of stablecoins.
Earlier, ForkLog reported that Celsius is considering issuing wrapped tokens as part of the platform’s restructuring plan.
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