Just a week after Celsius Network co-founder Alex Mashinsky stepped down, fellow co-founder and Chief Strategy Officer S. Daniel Leon has also left the now-bankrupt Hoboken-based crypto lending platform.
“We can confirm that Daniel Leon resigned from his position at Celsius and is no longer part of the organization,” the company told NJBIZ in a statement Oct. 5.
Mashinsky’s resignation in late September followed a dramatic period when Celsius was first forced to pause withdrawals in June, leaving customers’ accounts frozen. Then came the Chapter 11 bankruptcy filing in July. NJBIZ has extensively chronicled the company’s swift downfall amid a wider cryptocurrency collapse over the last few months.
“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 in his resignation letter. “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.”
The latest departure also comes as Celsius set dates for the auction of its assets. According to a filing with the U.S. Bankruptcy Court for the Southern District of New York, Celsius will have a final bid deadline of Oct. 17. If necessary, an auction would be held on Oct. 20.
A sale hearing is slated for Nov. 1.