Image source: Bitcoinist

On September 27, 2022, Alex Mashinsky, the CEO of Celsius, tendered his resignation, regretting his role at the bankrupt crypto lending company.

Mashinsky shared that his time at the company has resulted in “increasing distraction.”

The resignation letter

A New York law firm announced on Tuesday that Alex Mashinsky had submitted his resignation letter to Celsius’s board of directors.

“I elected to resign my post as CEO of Celsius Network today,” the statement reads.

“Nevertheless, I will continue to maintain my focus on working to help the community united behind a plan that provide the best outcome for all creditors – which is what I have been doing since the company filed for bankruptcy.”

“I believe we all will get more if Celsians stay united and help the UCC with the best recovery plan.”

“I remain willing and available to continue to work with the Company and their advisors to achieve a successful reorganization.”

In the letter, Mashinsky lamented the distraction his presence as CEO had brought to the company.

“I am very sorry about the difficult financial circumstances members of our community are facing.”

Alex Mashinsky was allegedly responsible for Celsius’ poor trades early in 2022, which later led to the crypto lender’s bankruptcy.

Celsius and bankruptcy

In 2022, several cryptocurrency lenders witnessed the freezing of user withdrawals after the crypto markets crashed.

Celsius was one of the first major cryptocurrency lenders to lead the freezing of withdrawals.

Weeks of silence followed before Celsius finally filed for bankruptcy.

During the trial, the company revealed it had a $1.2 billion dollar gap on its balance sheet.

On-chain data showed that Celsius repaid the money in a rush through several DeFi loans prior to the bankruptcy filing.

It was revealed that the efforts were an attempt to avoid being liquidated on over $40 million of Bitcoin collateral.

Celsius eventually repaid the entire loan and managed to get the money back.

Subsequent operations and allegations

After repaying the loans, Celsius was allowed to sell the Bitcoin she had mined to pay for her operations.

Data for July indicates that the company’s operations were operating at a loss.

However, a New York judge ruled that the move would benefit investors.

At the beginning of this month, Vermont’s officials said that Celsius was unable to pay his debts until 2019.

The officials also said that Alex Mashinsky made false and misleading statements to exaggerate Celsius’ financial health.

Reference:

CEO of bankrupt crypto lender Celsius Alex Mashinsky resigns