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Co-founder of Celsius Daniel Leon has resigned.

Co-founder of Celsius Daniel Leon has resigned. WikiBit 2022-10-05 15:24

Co-founder Daniel Leon left Celsius Network Ltd. this week, further weakening the already troubled cryptocurrency lender.

In a statement provided to Bloomberg News on Tuesday, the cryptocurrency lender that went into bankruptcy previously this year said, “We confirm that Daniel Leon resigned from his role at Celsius and is no longer part of the group.”

His departure comes a week after Alex Mashinsky, the company's CEO, turned in his letter of resignation.

The company's Special Committee of the Board of Directors received the resignation letter, according to a press release from the organization.

“Please accept my resignation as CEO of Celsius Network Ltd, as well as my directorships and other positions at each of its direct and indirect subsidiaries, with the exception of my director position at Celsius Network Ltd., effective immediately.” Mashinsky wrote in his letter of resignation.

Lior Koren, formerly the business's worldwide tax director, is now in charge and based in Israel, according to CNBC, which cited an internal email.

Following the ambiguity of hundreds of investors, Celsius declared bankruptcy. Prior to the decline in cryptocurrency values, the corporation had placed dangerous bets. The business revealed a $1.19 billion deficit in July.

The design of Celsius' business strategy was intended to compete with conventional banks. It made it possible for users to invest in their cryptocurrency and earn interest on it. According to a filing made on Monday, Celsius is already soliciting bids for its assets and may decide to hold an auction on October 20.

According to Blockchain.News, the final bid deadline has been set for October 17, but if necessary, it will be moved to October 20 based on a file with the US Bankruptcy Court for the Southern District of New York.

Sam Bankman-Fried, the founder and CEO of the digital asset exchange FTX, is reportedly considering making a bid for the assets of the defunct lender Celsius Network, according to a source with knowledge of the situation.

On November 1st, a sale hearing will take place.

According to Blockchain.News, Celsius recently disclosed that it had no intention of requesting repayment from its debtors over the course of its Chapter 11 bankruptcy case. With yields reaching up to 18.6% a year, Celsius was founded in 2017 to offer interest-bearing services to crypto holders who deposited their money. To make money, the company would loan out cryptocurrency.

In 2017, Mashinsky and Daniel Leon co-founded the Celsius Network, and the business has since developed to become one of the most renowned crypto lending in the industry.

With more than $8 billion in client loans and close to $12 billion in assets managed, Celsius was one of the biggest cryptocurrency lending platforms prior to the freeze. Offering payouts of up to 17% on cryptocurrency deposits, the company had drawn 1.7 million customers.

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