Celsius boss put under pressure from creditors because ftx assets targets

Celsius boss put under pressure from creditors because ftx assets targets

The resignation of the former CEO of Celsius, Alex Mashinsky, was carried out after a committee who represented the crypto loan from the crypto loan, a Court files has uncovered.

Since the group was founded on July 27th, the committee focused on the protection of the interests of Celsius account doors and unsecured creditors. As part of this process, it carried out an investigation against Mashinsky and other corporate insiders, including their "problematic decisions about the use of assets".

When checking, the committee found that the maintenance of Mashinsky as CEO was "unacceptable and not in the best interest of the lands" and that a new leadership is of crucial importance.

You also decided that all restructuring efforts led by Maschinsky would probably face major challenges and then asked the special committee of the board to remove it as CEO.

Mashinsky officially resigned from his post on Tuesday and said in a letter of resignation to the special committee that his role would become increasingly a distraction and apologized for the financial difficulties with which the company was confronted. He continues to hold the position of the director at the parent company of Celsius.

The former CFO Chris Ferraro was appointed interim CEO and Chief Restructuring Officer. The creditor committee believes that it is able to monitor Celsius' assets and matters and is looking forward to the further dialogue with him.

Even if Maschinsky is no longer heading the company, the committee must still present the results of its investigation and raise complaints against him and other insiders.

The collapse of Celsius shaked the crypto markets at the beginning of this year and left industrial investors who were shaken by the consequences of freezing customer money by companies. The competing crypto loan Voyager also reported bankruptcy, and now his assets were sold to the FTX crypto exchange for $ 1.4 billion.

ftx is waiting in the starting blocks to draw Celsius' assets

ftx, which wants to raise $ 1 billion, is now also considering an offer for assets that belong to Celsius.

The not yet announced financing round was by Bloomberg> confirmed on Tuesday, citing a person who is familiar with both the increase and the takeover offer.

Neither FTX CEO Sam Bankman-Fried nor a company spokesman immediately answered a request for comment.

How Voyager applied for Celsius in July in accordance with Chapter 11, after the withdrawals were discontinued in June, and blamed “extreme market conditions” as the main reason.

Later it became known that Celsius had become the victim of a “run on the bank” scenario when the users were disillusioned both by the company and the market depression.

until July the lender had fallen deeply into the red, with debt of $ 4.7 billion and 100,000 creditors who knocked on Celsiuss door and recalled their money.

Some believers borrowed cash without any collateral to secure liabilities. The Bankman-Fried, Alameda Research trading company, is one of the 50 most important unsecured creditors of the lender.

The main business of Celsius was to pay the insertion interest rates for their digital assets stored on the platform, which were awarded in various opaque ways, some of which proved to be risky.

at its peak, Celsius managed around $ 8 billion in crypto loans with a fortune of around $ 11.8 billion and used all around From May 2022.