On Tuesday, Celsius Network said that CEO Alex Mashinsky has decided to step down and the bankruptcy has appointed finance chief Chris Ferraro as its interim CEO.
Before joining JPMorgan Chase Co., Ferraro worked for nearly 18 years. Celsius said 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 members of our community are 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 board of directors, Mashinsky said he remains committed to helping the company develop and promote a plan to return deposits to customers.
On July 13, Celsius filed for Chapter 11 bankruptcy, which was a matter of months 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 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 the past, Celsius sued a former investment manager, accusing him of stealing tens of millions of dollars in assets before the lender went bankrupt.
FTX won a $1.42 billion bid to acquire its assets at an auction, according to Voyager Digital, which filed for bankruptcy in July.