Alex Mashinsky resigns after crashing Celsius Network to ground — CEL tanks

Celsius Network CEO Alex Mashinsky resigns — CEL tanks

YEREVAN (CoinChapter.com) — Celsius Network (CEL) CEO Alex Mashinsky has tendered his resignation from the post of Chief Operating Officer (CEO) of the company.

In a letter submitted on Tuesday, September 27, Mashinsky said he is stepping down from all positions in the company and its subsidiaries. However, he informed me that he would retain his position as a director of the firm.

“Effective immediately, please accept my resignation as CEO of Celsius Network Ltd, as well as my directorships and other positions at each of its direct and indirect subsidiaries, with the exception of my director position at Celsius Network Ltd,”
the resignation letter reads.

In a display of his commitment to the bankrupt crypto lending firm, Mashinsky assured that he is ready to continue to work with the Company and its advisors “to achieve a successful reorganization.”

Alex Mashinksy posted about his resignation on Twitter.

Mashinsky pushed out for a new Celsius CEO

Alex Mashinsky’s resignation comes amid increased pressure on the company by the Official Committee of Unsecured Creditors representing customers in the company’s bankruptcy case.

Having asked for Mashinsky’s resignation, the Committee had also threatened to start legal proceedings against him to recoup some of the damages caused.

In a statement filed on Tuesday in the bankruptcy court, the group welcomed Mashinysky’s recognition as “a positive step.”

“After reviewing, among other things, the information provided, the Committee concluded that allowing Mr. Mashinsky to remain as CEO was unacceptable and not in the best interests of the estates, and that new executive leadership was required,”
the statement reads.

The Committee had also clarified that they would oppose any restructuring plan associated with Mashinsky.

Investors have tied their hopes with the new Celsius CEO.

Following his resignation, the company appointed Chief Financial Officer (CFO) Chris Ferraro as interim CEO.

CEL tanks upon news of Mashinsky’s resignation

After news of Mashinsky’s resignation broke, CEL, the native token of Celsius Network, tanked.

According to data on CoinMarketCap, the battered crypto shed about 10%. It fell from around $1.4931 to $1.3566 before regaining lost ground on Wednesday.

At the time of writing, CEL exchanges hand at $1.53, around 80% below its all-time high of $8.02 from June 2021.

The price of CEL is recovering after it tanked following Alex Mashinsky’s resignation.

As CoinChapter had earlier reported, Celsius Network’s former investment manager Jason Stone had alleged Mashinsky used the company to run a Ponzi Scheme.

Earlier this month, the Vermont Department of Financial Regulation accused the crypto lender and its CEO Alex Mashinsky of misleading investors.

According to the United States Bankruptcy Court filings, Celcius might have hidden its financial troubles from backers. The company also allegedly engaged in “improper manipulation” of the price of the platform’s CEL token to boost its balance sheet.

Celsius filed for Chapter 11 bankruptcy in July after Terra’s LUNA lost its peg to the US Dollar. The company had earlier paused withdrawals from its lending platform.

All eyes will now be on Ferraro, who has a mammoth task of leading the company through the mess created under Mashinsky’s leadership.

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