Celsius Network CEO Alex Mashinsky steps down

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Celsius Network CEO Alex Mashinsky steps down

On Tuesday, the CEO of the Celsius Network said that Alex Mashinsky has decided to step down and that the bankruptcy has appointed finance chief Chris Ferraro as its interim CEO.

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

Mashinsky said that 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.

Mashinksy did not respond immediately to a request for comment from a Reuters, but 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.

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

In the aftermath of the COVID-19 epidemic, Celsius drew 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 lawsuit last month, Celsius accused a former investment manager of stealing tens of millions of dollars in assets before the lender went bankrupt.

On Monday, Voyager Digital filed for bankruptcy, and said on Monday that FTX won a $1.42 billion bid to acquire its assets at an auction.