Celsius CEO Resigns amid bankruptcy proceedings


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The chief executive officer of Celsius Inc., Jake Reynolds, has resigned amidst the company’s bankruptcy proceedings, according to sources at the company. This comes after the departure of several other high ranking executives from the company in recent weeks. The company’s financial troubles have been well documented over the past year, and its stock has declined by more than 80 percent over that time period. The departures have raised concerns about what direction the company will take as it moves forward, given that these are some of its top talent.

Months after the cryptocurrency business requested Chapter 11 bankruptcy protection, Celsius Network CEO Alex Mashinsky sent in his letter of resignation on Tuesday.

Although Mashinsky’s departure is effective right away, he stated in a release that he will still work with the business to ensure creditors receive the “best conclusion.”

He expressed sadness in a message to the community that “my continuous work as CEO has been an increasing distraction, and I am extremely sorry about the challenging financial conditions members of our community are enduring.” Since the hiatus, I have given my all to assist the Company and its advisers in developing a workable plan that would allow the Company to refund coins to creditors in the most equitable and effective manner.

The CEL token, the company’s cryptocurrency, lost more than 7% of its value after the news, according to CoinMarketCap.

With about $12 billion in assets under management and more than $8 billion in customer loans as of May, Celsius was one of the biggest players in the cryptocurrency lending market. Customers’ cryptocurrency would be lent out by the company to counterparties ready to borrow it at exorbitant interest rates in exchange for a portion of the proceeds, which Celsius would then share with users.

The structure collapsed as a result of a liquidity crisis that affected the whole sector, forcing Celsius to halt withdrawals in June. Other businesses also had their assets frozen as a result of the market crash, and at least three of them filed for bankruptcy.

According to former workers and internal papers, the cryptocurrency corporation had a number of internal slip-ups before its present turbulence. Several workers portrayed a picture of recklessness, disarray, and purported market manipulation.

An early stage idea to convert Celsius’ debt into a new cryptocurrency was discussed last week in an internal meeting that was leaked to CNBC. The recording claims that Celsius will issue “wrapped tokens,” which will act as an IOU for clients. The ratio between what Celsius owes its clients and the available assets is represented by the tokens.

“Today’s announcement is a welcome move that will allow the Debtors, the Committee, and all other stakeholders to focus on moving these matters ahead in a fast and efficient way,” the Unsecured Creditors Committee stated in a filing with the bankruptcy court on Tuesday.

Chris Ferraro, the company’s chief financial officer, will act as Celsius’ chief restructuring officer and interim chief executive officer, according to the filing.


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