Bankrupt Crypto Lender Celsius Network's CEO, Alex Mashinsky, Resigns

Alex Mashinsky, the CEO of bankrupt crypto lender Celsius Network, has resigned, according to a press release.

Chief Financial Officer Chris Ferraro has been appointed as chief restructuring officer and interim CEO with immediate effect.

"I elected to resign my post as CEO of Celsius Network today," said Mashinsky. "Nevertheless, I will continue to maintain my focus on working to help the community unite behind a plan that will provide the best outcome for all creditors – which is what I have been doing since the company filed for bankruptcy," he added.

Celsius was one of the first in a long list of crypto companies that succumbed to the pressures of this year's bear market. The lender began to feel the squeeze following the collapse of the Terra ecosystem, which saw $60 billion in value evaporate in May. Celsius acted by freezing withdrawals in June before filing for bankruptcy one month later.

Celsius's native CEL token is trading 8% lower following the announcement.

The Official Committee of Unsecured Creditors, a group of former Celsius customers acting as liaisons for the company's bankruptcy case, said it had asked for Mashinsky's removal from the company.

"The Committee believes, based upon the information it has reviewed, that Mr. Ferraro is capable of overseeing the Debtors' assets and affairs and looks forward to further dialogue with Mr. Ferraro, the Special Committee, and the Debtors' advisors regarding the next phase of the restructuring process," the group said in a statement filed Tuesday in bankruptcy court.

The committee might also try to sue Mashinsky for any damages they believe he personally owes, according to the statement.

UPDATE (Sept. 27, 2022 14:32 UTC): Adds details of Chris Ferraro's appointment and context throughout.

UPDATE (Sept. 27, 2022 16:45 UTC): Adds statement from creditors in bankruptcy case.