Crypto Lending Platform Celsius Bankrut, CEO Alex Mashinsky Resigns and Apologizes

JAKARTA – Crypto lending company Celsius Network has gone bankrupt. Hence, Celsius founder and CEO Alex Mashinsky announced his retirement from the company. In addition, he also expressed his apologies due to the difficult financial conditions for the company.

Previously, in June 2022, Celsius suspended withdrawals and transfers of funds on its platform. A month later, on July 13, 2022, the crypto lending company filed for bankruptcy protection. Until now, the investor's funds have not been repaid by the company.

However, according to information circulating, Celsius executives suggested the company might try to leverage crypto IOUs to pay back investors. Three days after the report surfaced, Celsius Network CEO Alex Mashinsky told the public in a press release that he had resigned from his post.

"Effective immediately, please accept my resignation as CEO of Celsius Network Ltd, as well as my directorship and other positions in each of its direct and indirect subsidiaries, except for my director position at Celsius Network Ltd", Mashinsky wrote in a statement released on Tuesday.

He then apologized because his role as CEO of the company made the company's financial condition more difficult.

“I apologize that my continuing role as CEO has become an increasing nuisance, and I am deeply sorry for the difficult financial circumstances members of our community are facing", added Mashinsky.

Even after leaving his post, Mashinsky is still helping the company and its advisory board to return cryptocurrencies to creditors.

“Since the hiatus, I have worked tirelessly to help the company and its advisors come up with a viable plan for the company to return coins to creditors most fairly and efficiently. I am committed to helping the company continue to refine and promote the plan…", he said.

Crypto lending platform Celsius went bankrupt as many creditors failed to recoup losses. Celsius was affected by the fall of Terra LUNA in May. For additional information, Celsius Network was founded in 2017 by Alex Mashinsky, Daniel Leon, and Nuke Goldstein. The crypto lending company is based in Hoboken, New Jersey, USA.