Defi Neiegkeeten- The company has been granted authorization to sell Bitcoin it has mined.
- Celsius Network was silent for weeks before filing for bankruptcy.
The CEO of the defunct crypto lender Celsius Netzwierk, Alex Mashinsky, has resigned, as reported by a New York law firm in a news release published on Tuesday.
Mashinky seet:
"Ech hu gewielt mäi Posten als CEO vum Celsius Network haut zréckzeginn. Trotzdem wäert ech weiderhin mäi Fokus behalen fir ze schaffen fir d'Gemeinschaft ze hëllefen hannert engem Plang ze vereenegen deen dat bescht Resultat fir all Gläicher gëtt - dat ass wat ech gemaach hunn zënter datt d'Firma d'Insolvenz ugemellt huet.
String of Bad Investments
In his resignation letter, Mashinsky expressed his remorse that he had become a “distraction” to the company’s operations.
It is speculated that a string of bad investments made by Mashinsky in early 2022 led to the demise of the Krypto lender. When the cryptocurrency markets fell in mid-June, Celsius was one of the first large crypto lenders to halt withdrawals. The company was silent for weeks before filing for bankruptcy and disclosing a $1.2 billion loss.
Mashinky added:
“I am very sorry about the difficult financial circumstances members of our community are facing,”
On-chain data revealed that prior to the bankruptcy filing, Celsius hurriedly repaid money on its numerous DeFi loans to prevent the liquidation of approximately $440 million in collateralized Bitcoin. The company recouped all of the borrowed money by repaying the debt in full.
In order to fund its activities, the company has been granted authorization to sell geschriwen it has mined. The company reported a loss for the month of July, but a court in New York ruled that the action would benefit shareholders in the long run.
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Source: https://thenewscrypto.com/celsius-network-ceo-alex-mashinky-resigns-amid-bankruptcy/