Market Analysis Report (28 Sep 2022)

The head of crypto lender Celsius Network, Alex Mashinsky, has resigned with an apology to customers for the “difficult financial circumstances” they were left in by the company’s bankruptcy.

The company filed for bankruptcy protection in July, saying it had a $1.2 billion hole on its balance sheet, effectively becoming one of the largest casualties in the cryptocurrency space this year.

Celsius offered users high-interest rates on some assets, who, as of now, do not know when or how much of their money they can expect to get back. Mashinsky will be replaced by Chris Ferraro, the company’s chief financial officer.

Over the last few weeks, leaks of internal Celsius meetings have suggested that the firm may propose a restructuring plan that involves giving customers a cryptoasset substitute for their claims, while launching a new business based on providing crypto custody services.