CEO of Celsius Network Resigns Immediately as Bankruptcy Woes Continue
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According to a press release, Alex Mashinsky, the CEO of the bankrupt cryptocurrency lender Celsius Network, has resigned effective immediately. The organization’s founder resigned from the board of directors’ special committee. Chief Financial Officer Chris Ferraro has been named chief restructuring officer and interim CEO, effective immediately. It is worth noting that Celsius was among the first of a slew of cryptocurrency firms to succumb to the rigors of this year’s bear market.
BREAKING: Alex Mashinsky has resigned from Celsius, effective immediately.
— Bitcoin Archive 🗄🚀🌔 (@BTC_Archive) September 27, 2022
Following the collapse of the Terra ecosystem in May, which resulted in the loss of $60 billion in value, the lender began to feel the pinch. Celsius began blocking withdrawals in June before declaring bankruptcy a month later. Celsius’ native CEL coin is trading 8% lower as a result of the announcement.
Significant Loss Causes Celsius Network Turbulence
Today, Alex Mashinsky handed in his resignation letter to the Celsius network’s Board of Management. Because the corporation is still being sued, the reasons for the departure are unknown. Rumor has it that the corporation is currently a bankrupt cryptocurrency company in Hoboken, New Jersey. It has primary operations in four major countries and operates globally. In a statement, Mr. Alex stated that he resigned as CEO of Celsius Network for no serious reasons. However, he stated that he would continue to work on assisting the company and the community with a purposeful procedure that would improve the best possible outcomes for all debtors. He has attempted to conceal the firm’s bankruptcy since it declared bankruptcy in the first quarter of 2022.
In addition, he urged the Celsius community to be engaged and united in assisting the UCC with a more convenient and effective recovery strategy. He also stated that he would remain accessible and eager to work with the company and its legal counsel to ensure a successful restructuring. The following is the CEO’s message: “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, effective immediately. I regret that my extended role as CEO has become an increasing distraction, and I deeply regret the difficult financial circumstances that members of our community are experiencing.”
Chris Ferraro Chosen to Take Over Alex’s Duties
When David Barse and Allan Carr, Special committee members of Celsius’s Board of Directors, announced the CEO’s resignation, Chris Ferraro was immediately appointed Chief Restructuring Officer and Interim Chief Executive Officer. According to the two executives, Ferraro was chosen as an eligible candidate for the position during the chapter 11 proceedings (Carr and Barse). The seasoned finance officer has been a reliable and valued team member in every difficult situation.
Ferraro was previously Celsius’s chief financial officer. Before joining Celsius, he worked for JPMorgan Chase and Co. for over 18 years, holding positions such as Global Head of FP and A and Treasurer of the Retail Bank.