Celsius CEO Alex Mashinsky steps down

"I am truly sorry for the financial hardship our community members are facing," writes Mashinsky.

According to a new press release on Tuesday, Alex Mashinsky, CEO of struggling crypto lender Celsius Network, has stepped down effective immediately. Explaining the decision, Mashinsky wrote:

“I regret that my continued role as CEO has become an increasing distraction, and I am truly sorry for the financial hardship our community members are facing. Since the hiatus, I have worked tirelessly to help the company and its advisers to come up with a workable plan for the company to return coins to creditors in the fairest and most efficient manner."

Founded in 2017, Celsius Network was a rising star in crypto lending, surpassing over 1.7 million customers, $25 billion in assets under management, and $850 million in cumulative interest paid more early this year. However, its fortunes took a drastic turn when the ongoing crypto winter exposed the company's risky and leveraged trading practices.

As a result, the company halted all consumer withdrawals in June and ended up with a balance sheet deficit of nearly $2.85 billion. Major players, such as the Caisse de rentes du Québec, lost almost all of their investment in the company. Even Celsius co-founder Daniel Leon told the court that his capital was "worthless". The company is currently in bankruptcy proceedings.

Mashinsky attempted to revive the company by restructuring it to focus on crypto custody. He also reportedly shared plans to turn his debt into cryptocurrency and dump it on creditors. After the collapse of Celsius, rumors circulated that