Celsius co-founder and strategy head Leon resigns from bankrupt crypto lender
2022.10.04 16:57
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© Reuters. FILE PHOTO: Celsius Network logo and representations of cryptocurrencies are seen in this illustration taken, June 13, 2022. REUTERS/Dado Ruvic/Illustration
(Reuters) – Celsius Network’s co-founder and chief strategy officer Daniel Leon has stepped down, the bankrupt crypto lender said on Tuesday, joining a wave of executive departures from beleaguered digital asset companies.
The announcement comes a week after chief executive officer Alex Mashinsky’s resignation. Leon’s departure was first reported by CNBC.
Hoboken, New Jersey-based Celsius filed for Chapter 11 bankruptcy in July, a month after freezing withdrawals citing extreme market conditions.
Lenders such as Celsius boomed in lockstep with the surge in popularity of major cryptocurrencies like , as they offered interest rates much higher than traditional banks and easy access to loans.
However, the collapse of digital tokens terraUSD and luna, coupled with a tough macroeconomic environment, tested their business model and eroded customers’ optimism.
Voyager Digital Ltd, another major U.S. crypto lender, also filed for bankruptcy in July.
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