Celsius Network Co-founder Resigns Amid Bankruptcy Proceedings

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Celsius Network Co-founder Resigns Amid Bankruptcy Proceedings
Credit: © Reuters.

  • Celsius froze client withdrawals and later filed for Chapter 11 bankruptcy protections.
  • Mashinsky handed up his resignation a week ago today.

On Tuesday, S. Daniel Leon, co-founder of Celsius Network and Chief Strategy Officer, announced his resignation. After previous CEO Alex Mashinsky, he is the most recent executive to leave the organization.

The Financial Times stated that Leon is leaving Celsius while the company continues its bankruptcy procedures. Mashinsky handed up his resignation a week ago today. After filing for Chapter 11 bankruptcy in New York in July, Celsius is now being investigated by a federal-appointed and court-authorized investigator.

Yet Another High-Rank Exit

Tiffany Fong, a YouTuber, had previously released recordings of two all-staff meetings at the firm, which she said hinted at Leon’s departure. Mashinsky and several other executives put out a “Kelvin” rehabilitation plan that emphasizes maintaining safe and secure possession of the subject. In another, Celsius’ co-founder and CTO Nuke Goldstein proposed issuing “IOU” tokens to clients.

Celsius has been accused of not being entirely forthright with the U.S. Trustee’s office and some of its creditors about the company’s financial status. These assertions are the focus of the investigation. Earlier Celsius froze client withdrawals and later filed for Chapter 11 bankruptcy protections.

The email said that Lior Koren, the company’s former global tax director, would be taking over and would be based in Israel. A confirmation of Leon’s resignation was sent to CNBC by Celsius.

New Jersey-based Celsius made news in June when it froze user accounts in the midst of the so-called “crypto winter” and a liquidity constraint throughout the sector. In the days before the suspension, Celsius was one of the biggest crypto lending platforms, with $8 billion in loans to customers and over $12 billion in assets under control.

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