Celsius Network's CEO Alex Mashinsky resigns, says will work with business to ensure creditors get best solution

Months after Celsius Network filed for Chapter 11 bankruptcy protection, Alex Mashinsky, the CEO of the cryptocurrency company, resigned from his post on this Tuesday.

Although Mashinsky's departure was effective on-spot, showing grief in his resignation letter, he stated that he would still work with the business to ensure creditors receive the best solution.

According to CoinMarketCap, Celsius Network's cryptocurrency, the CEL token, went down 7% in its value after the resignation was announced by Mashinsky, even being the market leader with over $8 billion of loans and $12 billion of assets in May.


Due to a massive liquidity crunch in June, the company had to pause its withdrawals, resulting in other businesses having their assets frozen due to the market crash. Three of them filed for bankruptcy.



As per CNBC's report, many ex-employees and confidential documents prove that poor management decisions caused this critical situation, which can be related to when several Celsius Network employees drew pictures to illustrate the recklessness, disarray, and purported market manipulation.

According to a leaked internal meeting, CNBC reported that the company is discussing turning its debt into a new cryptocurrency. The tokens represent the ratio between what Celsius owes its consumers and their available assets.

FAQs

1. What is Cryptocurrency?
   It's a digital currency used to exchange through the computer network
2. How do crypto companies make revenue?
   They made revenue from the transaction fees applied to the users.
3. Is investing in cryptocurrency beneficial?
   It may work if one is okay with high-risk, long-term investment and has good market knowledge.