- The company has been granted authorization to sell Bitcoin it has mined.
- Celsius Network was silent for weeks before filing for bankruptcy.
The CEO of the defunct crypto lender Celsius Network, Alex Mashinsky, has resigned, as reported by a New York law firm in a news release published on Tuesday.
Mashinsky stated:
“I elected to resign my post as CEO of Celsius Network today. 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.”
String of Bad Investments
In his resignation letter, Mashinsky expressed his remorse that he had become a “distraction” to the company’s operations.
It is speculated that a string of bad investments made by Mashinsky in early 2022 led to the demise of the crypto lender. When the cryptocurrency markets fell in mid-June, Celsius was one of the first large crypto lenders to halt withdrawals. The company was silent for weeks before filing for bankruptcy and disclosing a $1.2 billion loss.
Mashinsky added:
“I am very sorry about the difficult financial circumstances members of our community are facing,”
On-chain data revealed that prior to the bankruptcy filing, Celsius hurriedly repaid money on its numerous DeFi loans to prevent the liquidation of approximately $440 million in collateralized Bitcoin. The company recouped all of the borrowed money by repaying the debt in full.
In order to fund its activities, the company has been granted authorization to sell Bitcoin it has mined. The company reported a loss for the month of July, but a court in New York ruled that the action would benefit shareholders in the long run.
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