Celsius Network CEO Alex Mashinsky to step down

On Tuesday, Celsius Network said that Chief Executive Officer Alex Mashinsky has decided to step down and the bankruptCryptocurrency lender Chris Ferraro has been appointed interim CEO.

Before joining JPMorgan Chase Co., Ferraro said that Ferraro would serve as the company's chief restructuring officer.

I regret that my continued role as CEO has become an increasing distraction, and I am very sorry for the difficult financial circumstances that the community is facing, Mashinsky said in a statement.

Mashinksy, who didn't respond immediately to a request for comment, decided to step down at a time when the company is seeking protection from creditors.

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

A month after freezing withdrawals and transfers for its 1.7 million customers because of extreme market conditions, Celsius filed for Chapter 11 bankruptcy on July 13, filing for Chapter 11 bankruptcy in Hoboken, New Jersey, filed for Chapter 11 bankruptcy on July 13, a month after freezing withdrawals and transfers for its 1.7 million customers and listing a $1.19 billion deficit on its balance sheet.

During the COVID 19 epidemic, cryptocurrencies like Celsius exploded, drawing depositors with high interest rates and easy access to loans rarely offered by traditional banks. They lent token to institutional investors, making a profit from the difference.

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

The FTX bid to acquire its assets at an auction was won on Monday by Rival Digital, which filed for bankruptcy in July.