Alex Mashinsky has finally read the room and stepped down as chief executive officer of bankrupt crypto lender Celsius Network.
Mashinsky oversaw one of the most worst crashes in crypto history, when the centralised finance lender became illiquid, trapping billions of dollars of users’ funds and driving the company to bankruptcy.
Celsius Network filed for Chapter 11 bankruptcy protection in July and has since suggested resuscitating the company as a crypto custodian service.
“I regret that my continued role as CEO has become an increasing distraction, and I am very sorry about the difficult financial circumstances members of our community are facing,” Mashinsky’s resignation letter read.
He added: “Since the pause, I have worked tirelessly to help the company and its advisors put forward a viable plan for the company to return coins to creditors in the fairest and most efficient way.
“I believe we all will get more if Celsians stay united and help the UCC (unsecured creditors committee) with the best recovery plan. I remain willing and available to continue to work with the company and their advisors to achieve a successful reorganisation.”
SBF to swoop on
Serial entrepreneur/distressed asset buyer/John Pierpont Morgan analogue Sam Bankman-Fried may be poised to make an offer on Celsius Newtork’s assets through his acquisitive digital asset exchange FTX.
No official word has been given, but Bloomberg reported the possibility “according to a person familiar with his deal-making”.
On the one hand, the move would make complete sense, given SBF’s appetite for distressed crypto assets and the fact that FTX successfully secured a US$1.4bn bid for fellow bankrupt crypto firm Voyager Digital (CSE:VYGR, OTCQX:VYGVF) just this week.
But on the other hand, SBF has previously distanced himself from rumours of a bid to buy Celsius Network.
Perhaps Mashinsky’s resignation has made a bid slightly more palatable.
Unbankrupt Yourself
Speaking of reading the room, Alex’s wife Krissy Mashinsky thought it a good idea to start selling ‘Unbankrupt Yourself’ t-shirts through the USA Strong online marketplace.
The black t-shirt, emblazoned with a bastardisation of Celsius Network’s official slogan ‘Unbank Yourself’, can be bought for a bargain price of US$28.
Unbankrupt Yourself by Krissy Mashinsky, available in a range of sizes – Source: usastrong.io
Why she found it a good idea to make light of a bankruptcy that has hurt thousands of people is anyone’s guess.
Gotham star and Mashinksy trade barbs
In another timeline, it would be bizarre for Krissy Mashinsky and star of The O.C. and Gotham Ben McKenzie to get into a Twitter (NYSE:TWTR) spat over these ironic t-shirts, but here we are.
“Who bought them? The supposed 1.7 million “Celsians” who lost their money in your husband’s company?” enquired McKenzie.
“Get over it,” Krissy replied.
Omg @ben_mckenzie Get over it. Here, meet @TiffanyFong_ you two should date ❤️. You can thank later. #alwaysthebridesmaidneverthebride https://t.co/wFhdEB1NAk— krissy ???????? ???? (@KrissyMashinsky) September 13, 2022
McKenzie is firmly crypto-skeptic, even having written a book on the topic, so perhaps it’s not so bizarre.
Anyway, I’m not one to judge a person on their partner’s behaviour.
Ultimately, Mashinsky’s resignation is probably a good thing for creditors who just want the whole disaster fixed without dealing with a volatile figurehead, so kudos to him for that.
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