Celsius CEO resigns amid bankruptcy proceedings

Celsius Network said on Tuesday that chief executive Alex Mashinsky has decided to step down and the bankrupt crypto lender has named chief financial officer Chris Ferraro as interim CEO.

Prior to Celsius, Ferraro spent nearly 18 years at JPMorgan Chase & Co. Celsius also said Ferraro would be the company’s chief restructuring officer.

“I regret that my continued role as CEO has become an increasing distraction, and I am truly sorry for the difficult financial circumstances that members of our community are facing,” Mashinsky said in a statement.

Mashinsky, who did not immediately respond to a request for comment from Reuters, chose to step down at a time when the company seeks protection from creditors.

In his resignation letter to the company’s board, Mashinsky said he remains committed to helping the company develop and promote a plan to return deposits to customers.

Hoboken, New Jersey-based Celsius filed for Chapter 11 bankruptcy on July 13, a month after freezing withdrawals and transfers for its 1.7 million customers due to “extreme” market conditions. “and have recorded a deficit of 1.19 billion dollars on its balance sheet.

Last month, Celsius sued a former investment manager, accusing him of losing or stealing tens of millions of dollars in assets before the crypto lender went bankrupt.

Rival crypto lender Voyager Digital, which also filed for bankruptcy in July, said on Monday that crypto exchange FTX had won a $1.42 billion bid to acquire its assets at an auction.

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