Celsius CEO resigns — FTX eyes takeover bid?
Alex Mashinsky served as Celsius Network's CEO for years, but the 56-year-old American is finally out.
Alex Mashinsky was Celsius Network's CEO for years, but the 56-year-old American is finally out. The crypto service announced in a press release that the board is aware of his immediate resignation. Chief Financial Officer Chris Ferraro will temporarily take over his duties. Mashinsky will, however, stay with the company as a director. In this role, he plans to stay focused on the restructuring plan for the insolvent lending service.
A Matter of Time
Mashinsky stepping down isn't surprising to many. Groups representing harmed Celsius investors have already called for his ouster. They're also considering legal action against Mashinsky. The former CEO is said to bear largely responsibility for the collapse of the crypto withdrawal service.
As the Financial Times reports, Mashinsky took over the company’s investment activities for himself shortly before the crash. In January, Mashinsky himself executed trades, defying the advice of the company’s internal investment strategists. He ignored several warnings and safety guidelines. What followed was a grim summer for Celsius. First came liquidity problems, then payments halted, and finally they filed for bankruptcy in July.
FTX allegedly planning to acquire Celsius
Meanwhile, the outcome of Celsius's bankruptcy process remains uncertain. Bloomberg just reported alleged interest from crypto exchange FTX. No concrete bid for the takeover was named.
However, it fits the approach of the American trading platform, which has provided financial help to several bankrupt companies during this crypto winter. Recently, it won the bid for the insolvent lender Voyager Digital, beating rival Binance with a bid of $1.4 billion.
