The CEO of insolvent crypto lender Celsius Network (CRYPTO: CEL) Alex Mashinsky has filed a letter of resignation to the board of directors of his organization, according to a press release from a New York law firm on Tuesday.
"I elected to resign my post as CEO of Celsius Network today. Nevertheless, I will continue to maintain my focus on working to help the community unite behind a plan that will provide the best outcome for all creditors – which is what I have been doing since the Company filed for bankruptcy," Mashinsky said.
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“I believe we all will get more if Celsians stay united and help the UCC with the best recovery plan. I remain willing and available to continue to work with the Company and their advisors to achieve a successful reorganization,” he added.
My role as CEO was a distraction: Mashinsky
In his letter to the board of directors, Mashinsky acknowledged his continued role as CEO was a “distraction,” which necessitated his resignation.
Early in 2022, a series of poor investments that were allegedly made by Mashinsky led to the downfall of the crypto lender.
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Since the fall of the crypto market earlier this year, Celsius has suffered, with the company limiting withdrawals before declaring bankruptcy.
Over the past several months, other crypto lending businesses have declared insolvency, causing the value of associated coins to nose dive.
In the midst of the turmoil, Voyager's token VGX has dropped from $3 at the start of the year to below $0.70 today, and Voyager's assets have been won by FTX at auction.
CEL plummets
CEL was trading at $1.37, down from $1.43 just before the announcement of his resignation.
With today's drop, CEL has lost over 25% of its value over the previous week after trading above $1.70 on Sept. 22.
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