According to reports, another high-ranking professional at crypto lending platform Celsius Network has decided to leave the company in the wake of the departure of former CEO Alex Mashinsky.
As reported by CNBC, Celsius announced Leon’s departure on Tuesday. To confirm, Daniel Leon has resigned from his position at Celsius and is no longer affiliated with the company.
As Celsius prepares to liquidate its assets later this month in preparation for its bankruptcy, both Mashinsky and Leon have decided to resign.
Sam Bankman-Fried, CEO of FTX, has been rescuing companies hit hard by the crypto winter, and he is reportedly considering making a bid for the assets of the troubled cryptocurrency lender.
After becoming insolvent in June, Celsius stopped processing withdrawals and eventually filed for Chapter 11 bankruptcy due to its inability to pay its debts.
It was reported in August by the Financial Times (FT) that Celsius had lost hundreds of millions of dollars of its customers’ money due to reckless proprietary trading.
According to the FT, Mashinsky removed $10 million worth of crypto assets from the Celsius platform in May, when users were panicking due to falling prices. According to a response from a spokesperson, Mashinsky withdrew the money to satisfy his tax responsibilities.
Around the end of May 2022, Mr. Mashinsky withdrew a portion of the cryptocurrency held in his account, the majority of which was used to settle his state and federal tax obligations. He had been a regular depositor of cryptocurrency for the previous nine months, depositing an amount equal to what he withdrew in May.