Home Technology C.E.O. of Celsius, the Crypto Bank, Resigns

C.E.O. of Celsius, the Crypto Bank, Resigns

by Atlanta Business Journal

Alex Mashinsky, who founded the cryptocurrency company Celsius Network, which filed for bankruptcy in July, said on Tuesday that he was resigning as chief executive.

Chris Ferraro, Celsius’s chief financial officer, will serve as Mr. Mashinsky’s interim replacement, the company said in a statement.

“I regret that my continued role as C.E.O. has become an increasing distraction,” Mr. Mashinsky, 56, wrote in a separate statement. “I am very sorry about the difficult financial circumstances members of our community are facing.”

Celsius rose to prominence as a kind of cryptocurrency bank, offering huge interest rates to customers who deposited their savings. But when the market crashed this spring, Celsius collapsed, halting withdrawals and eventually filing for bankruptcy in New York. The firm’s implosion was one of the most damaging episodes of the crash: In legal filings this summer, Celsius said it owed customers $4.7 billion.

As recently as this month, Mr. Mashinsky was trumpeting an audacious plan to revive the company, possibly under the name Kelvin, according to a recording of an internal meeting shared with The New York Times.

“I have worked tirelessly to help the company and its advisors put forward a viable plan for the company to return coins to creditors,” he said in his statement on Tuesday. “I am committed to helping the company continue to flesh out and promote that plan.”

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