As the fallout continues from Celsius Network’s summer bankruptcy filing, the company announced Sept. 27 that CEO Alex Mashinsky resigned, effective immediately.
Additionally, Chris Ferraro was appointed to the role of chief restructuring officer and interim chief executive officer.
The bankruptcy filing came after a withdrawal freeze across the company’s platform in June. NJBIZ documented the dramatic fall of the Hoboken-based crypto lender whose business model was strained amid a wider industry collapse.
Mashinsky submitted his letter of resignation to the Special Committee of the board of directors of Celsius Network Ltd.
“I regret that my continued role as CEO has become an increasing distraction, and I am very sorry about the difficult financial circumstances members of our community are facing,” Mashinsky wrote. “Since the pause, I have worked tirelessly to help the company and its advisors put forward a viable plan for the company to return coins to creditors in the fairest and most efficient way. I am committed to helping the company continue to flesh out and promote that plan, in order to help account holders become whole.”
Ferraro’s appointment was announced by David Barse and Alan Carr, special committee members of the Celsius board of directors, who said he has been a valued executive in challenging circumstances since the Chapter 11 proceedings started.
Ferraro was previously appointed chief financial officer of Celsius. Prior to his time at the company, he spent nearly 18 years at JPMorgan Chase & Co. serving in various roles, including global head of FP&A and treasurer of the retail bank.
“The Special Committee is grateful to Alex for his dedication to the company and his efforts to assist with the company’s restructuring,” said Barse and Carr. “We look forward to the company’s continued engagement with the Unsecured Creditors’ Committee and other key stakeholders in our case, under Chris’ leadership, to consummate a comprehensive and expeditious restructuring that maximizes value for all stakeholders.”
In his resignation letter, Mashinsky reiterated his support “provide the best outcome for all creditors.”
“I believe we all will get more if Celsians stay united and help the UCC with the best recovery plan,” he wrote. “I remain willing and available to continue to work with the company and their advisors to achieve a successful organization.”