Celsius Network’s CEL Price Tanks 10% After CEO Alex Mashinsky Steps Down

CEO of embattled crypto lender Celsius Alex Mashinsky has resigned as the company’s CEO as it faces Chapter 11 bankruptcy in New York.

In a letter to the Special Committee of the Board of Directors of the Celsius Network, the former Celsius boss said,

“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. 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. Since the pause, I have worked tirelessly to help the Company and its advisors put forward a viable plan for the Company to return coins to creditors in the fairest and most efficient way. I am committed to helping the Company continue to flesh out and promote that plan, in order to help account holders become whole.”

The announcement comes after the company filed for Chapter 11 bankruptcy as leveraged bets made at the height of the crypto bull market started to unwind earlier this year, leaving customers bereft of $4.7 billion. It paused customer withdrawals in June 2022, citing volatile market conditions.

No successor to Mashinsky has been named as of yet.

Just two weeks ago, Mashinsky floated a daring plan to revitalize the failing company by introducing a new crypto wallet and charging special fees for transactions. The plan was met with skepticism from employees.

Following the announcement, the company’s native CEL token fell 10%

This is a developing story.