According to Bloomberg, the co-founder of the troubled cryptocurrency lender Celsius, Daniel Leon, has resigned from his position as chief strategy officer. The information was confirmed on Tuesday by Celsius, a now-defunct cryptocurrency lending company, which stated that Leon was “no longer part of the organization.”
On September 27, co-founder and CEO Alex Mashinsky also announced his resignation, citing his role as a “distraction” to the business and any further efforts to salvage the battered crypto lending platform.
It was discovered a week after his resignation that the former CEO had taken $10 million out of the business account in May, several weeks before the platform stopped allowing user withdrawals. A source told the Financial Times that this happened after taking out the same amount during the previous nine months, a source said.
In February 2018, Leon bought 32,600 shares of Celsius stock. What will happen to his dividends is still a mystery.
The once-dominant cryptocurrency lender went bust, leaving behind billions in debt and customers who are unsure of when they will see their money again.
When the platform stopped allowing withdrawals in June, it said that it was doing so “for the benefit of our entire community” and that it was doing so to “stabilize liquidity and operations while we take steps to preserve and protect assets.”
A few weeks later, Celsius filed for Chapter 11 bankruptcy, revealing a $1.2 billion hole in the company’s balance sheet and a $5 billion debt to investors.
This was expected by Vermont’s regulators. According to authorities, Celsius has been bankrupt at least since 2019. According to court documents, the regulators claimed that hundreds of millions of dollars pushed into Celsius’ native token had “artificially” inflated the company’s token holdings.
The company is nearing the end of its bankruptcy process, so an auction will be held for its remaining assets. There is a long list of “expected” bidders listed in the bankruptcy court filing, and the final bid deadline is set for October 17.
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