Alex Mashinsky – the CEO of the Celsius Network, the doomed digital currency staking platform that is now in the middle of bankruptcy proceedings – has resigned from his post and will no longer be associated with the company.
Celsius CEO Alex Mashinsky Says Goodbye
A letter of resignation by Mashinsky was submitted in late September and became effective immediately, though while he’s not set to have any official title with the company, Mashinsky said he would be staying onboard in a silent capacity as a way of helping the firm alleviate the present situation with its creditors. In a statement, he commented:
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.
The debacle of Celsius has been occurring since the days of summer when the firm – rather unexpectedly – announced that it was going to be halting all withdrawals, thus preventing people and traders working with the platform from gaining access to their money. This was spawned by the volatility the market is experiencing, as bearish conditions for bitcoin and many other leading forms of crypto get worse and worse.
From there, things took an even more drastic turn when the company announced that it was in the middle of filing for bankruptcy protection. This meant that the company could not legally be pursued in court by creditors or by customers who could not gain access to their funds. It also gave the company opportunities to explore how it could potentially remain afloat without utilizing all its present collateral.
The crypto industry has been suffering heavily for nearly a year. While bitcoin ultimately reached a new all-time high of about $68,000 per unit in the month of November in 2021, the world’s number one digital currency by market cap has done nothing but sink into perdition since then. This trend has also caught on with other leading digital assets like Ethereum, which is now trading for more than $3,000 below its November 2021 level.
So Much Trouble in the Space
The problems surrounding Celsius – while certainly noticeable – are not limited only to Celsius as several digital asset companies have been forced into bankruptcy following the steady increase of bearish conditions the space has witnessed. Other firms such as Voyager Digital and Three Arrows Capital have also been forced to liquidate and traverse through bankruptcy hearings as means of protecting themselves.
At one time, Celsius was one of the largest crypto lenders out there having provided more than $8 billion in loans to its clients.