Immediate Resignation

In a surprising turn of events, Alex Mashinsky, the CEO of Celsius Network, has announced his resignation effective immediately. In his statement, he expressed regret that his continued leadership was becoming a distraction amid the tumultuous circumstances facing the company and its community of investors.

The Rise and Fall of Celsius

Celsius Network, a once-celebrated figure in the world of crypto lending, boasted over 1.7 million customers and $25 billion in assets under management as of earlier this year. But like a star that burns too bright, Celsius’s ascent was short-lived, collapsing under the weight of its risky trading strategies as the crypto winter set in.

Financial Turmoil

Once thriving in the booming cryptocurrency market, the company’s situation turned dire when it halted all consumer withdrawals back in June. As the dust settled, it became evident that Celsius faced a staggering $2.85 billion gap in its balance sheet. Stakeholders, including the Quebec Pension Fund, were left to mourn massive losses, with Celsius co-founder Daniel Leon declaring his equity effectively “worthless.”

Attempts at Revival

Following the crash, Mashinsky attempted to steer the ship back on course by restructuring the company’s focus towards crypto custody. There were even rumors of plans to transform its debt into cryptocurrency, accompanied by airdrops to creditors. However, these measures failed to instill confidence and raised eyebrows among stakeholders.

Rumors and Speculation

Amid mounting challenges, whispers around Mashinsky’s alleged ambition to flee the U.S. emerged in the aftermath of the collapse. Though he vehemently denied these rumors, it certainly cast a shadow over his already faltering reputation. Despite the drama, 2022 earlier saw him land a spot on Cointelegraph’s Top 100 in Crypto and Blockchain list, coming in at #64.