Alex Mashinsky appointed as CEO of bankrupt crypto lender Celsius

Alex Mashinsky appointed as CEO of bankrupt crypto lender Celsius

The CEO of the bankruptCryptocurrency, Alex Mashinsky, has been appointed as interim CEO, according to the Reuters- Celsius Network.

Ferraro spent nearly 18 years at JPMorgan Chase Co. before joining Celsius.

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

Mashinsky decided to step down at a time when the company is seeking protection from creditors.

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

During the COVID 19 epidemic, cryptocurrencies attracted deposits 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.

The business model of the lenders came under scrutiny after the collapse of the major token terraUSD and luna in May.

In a month ago, Celsius accused a former investment manager of losing or stealing tens of millions of dollars in assets before the lender went bankrupt.