Alex Mashinsky's Resignation: Celsius Creditor Committee Demanded CEO To Step Down

The committee representing the creditors of bankrupt crypto lending platform Celsius Network had officially called for the removal of CEO Alex Mashinsky, reveals a new court filing.

The Committee of Unsecured Creditors (UCC) was conducting an investigation into the crypto lending platform and its executives. It demanded the removal of Mashinsky from his position following the probe, The Block reported.

Moreover, Celsius promoted CFO Chris Ferraro as the chief restructuring officer and interim executive officer. The committee representing the customers and creditors of Celsius said it will hold discussions with Ferraro, adding that he will make a capable leader for the platform.

After details of the investigation were out, creditors said it was "unacceptable and not in the best interests of the estates" to have him as the CEO. They added that a "new executive leadership was required."

Mashinsky submitted his resignation Monday.

"Effective immediately, please accept my resignation as CEO of Celsius Network Ltd, as well as my directorships and other positions at each of its direct and indirect subsidiaries, with the exception of my director position at Celsius Network Ltd," said Mashinsky in a statement.

The Hoboken, New Jersey-based crypto lender paused withdrawals in June and filed for Chapter 11 bankruptcy in July, confirming that the platform was not profitable and owed a lot of money to creditors.

"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. "I believe we all will get more if Celsians stay united and help the UCC with the best recovery plan."