Celsius CEO jumps ship in the middle of the storm

Alex Mashinsky resigns via a letter presented to the Special Committee of the company's Board of Directors.

Negocios September 28
Kimberly Rodriguez Medina

Celsius has not been out the news since it froze withdrawals from its platform last June. Since then, the platform has carried out a series of restructuring measures such as reducing its workforce by 25%. Now, it is the CEO who has abandoned ship, amid a barrage of criticism from its users. 

Alex Mashinsky who, until now, was the CEO of the company, submitted his resignation letter. The Special Committee of the Board of Directors of Celsius received Mashinsky's resignation, where he assures that he will "keep his focus on helping creditors." 

Mashinsky says that ever since the company filed for Chapter 11 bankruptcy, he has been executing a plan to restructure the company. The main reason for his resignation is because according to him, "continued role as CEO has become an increasing distraction". The former executive director continues the letter by lamenting the "difficult financial circumstances facing members of this community," who are becoming increasingly impatient. 

“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”, Alex Mashinsky. 

The platform, since it declared bankruptcy, has opted to assume its debts. However, after paying off the MakerDAO loan, and liberating the  21,962 bitcoins used as collateral, the company announced that it would only be able to return 22% of its client's funds. This is one of the reasons that users are furious,  not knowing when they will receive their money. 

The resignation of its CEO has caused greater uncertainty among its community, who expectantly await October 6, the date the company will undergo a hearing to authorize the reopening of withdrawals, despite only having 215 million dollars to deal with this situation. The value of the funds of its 58,300 clients amounts to 4.3 billion dollars, what do you think will happen when users cannot withdraw their money after waiting to do so for months? 

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