Market Analysis Report (05 Oct 2022)

The co-founder and chief strategy officer of bankrupt crypto lender Celsius has stepped down, according to an internal memo viewed by CNBC. S. Daniel Leon’s departure was announced on Tuesday, and his exit comes just a week after the company’s CEO, Alex Mashinsky, submitted a letter of resignation.

Lior Koren, who previously operated as the company’s global tax director, will take over the role. Celsius confirmed Leon’s resignation in an email to CNBC. 

Celsius, the once popular cryptocurrency lender, filed for Chapter 11 bankruptcy in July with a $1.2 billion hole in its balance sheet. The firm, which is based in Hoboken, New Jersey, made headlines after it froze customer accounts during periods of volatility, preventing them from accessing their funds. 

Prior to the freeze, Celsius was one of the largest crypto lending platforms with more than $8 billion in loans to clients and almost $12 billion in assets under management. However, behind the scenes, Celsius was lending users’ funds to those willing to pay a higher yield, according to internal documents shared with CNBC.