Celsius CEO resigns in bankruptcy proceedings

According to a Press releaseCEO of bankrupt crypto lender Celsius, Alex Mashinsky has resigned from his post.

“I have chosen to step down as CEO of Celsius Network today. Nonetheless, I will continue to focus on working to help the community unite behind a plan that will provide the best outcome for all creditors – what I have been doing since the company filed for bankruptcy,” he wrote in the press release.

The company’s chief financial officer, Chris Ferraro, has been named interim CEO and chief restructuring officer, effective immediately.

The Official Committee of Unsecured Creditors, a group of former Celsius customers acting as liaisons for the company’s bankruptcy case, said it had called for Mashinsky’s removal from the company.

Read also : Celsius creditors’ committee tasked with investigating insider misconduct

The group filed a statement in bankruptcy court which said that after considering everything, “the committee has concluded that allowing Mr. Mashinsky to remain CEO was unacceptable and not in the best interest of the estates, and that new management executive was necessary”.

The committee also concluded that any restructuring plan associated with Mashinsky would likely face significant challenges.

The committee also indicated that it may sue Mashinsky for any damages it feels it owes him personally.