The newest departure follows CEO Alex Mashinsky’s resignation last week, as executives are still leaving the bankrupt cryptocurrency lending company.
S. Daniel Leon, co-founder and chief strategy officer of the cryptocurrency lender Celsius Network, quit on Tuesday. After the now-retired CEO Alex Mashinsky, he is the most recent executive to leave the organization.
The Financial Times stated that Leon is leaving amid Celsius’s ongoing bankruptcy procedures. Inquiries are being conducted by an investigator chosen by the U.S. Trustee’s office and approved by the Bankruptcy Court for the Southern District of New York after Celsius filed for bankruptcy in New York in July.
YouTuber Tiffany Fong, who previously revealed audio from two leaked all-hands meetings at the corporation, made a suggestion about Leon’s resignation. In one, Mashinsky and other executives put forth the “Kelvin” rehabilitation plan, which emphasized custody. In another, co-founder and CTO Nuke Goldstein proposed that Celsius provide “IOU” tokens to its clients.
The U.S. Trustee’s office and a few Celsius creditors have charged that the company hasn’t been entirely transparent about its financial status. These claims are the subject of the investigation.
The Financial Times revealed earlier this month that Mashinsky took out nearly $10 million in cryptocurrency from the business in May, a few weeks before Celsius stopped letting customers withdraw money and just over a month before it applied for Chapter 11 bankruptcy protection.