Daniel Leon, the co-founder and chief strategy officer of the bankrupt crypto lender Celsius, has left the firm, according to CNBC.
Lior Koren, the company’s former global tax director, has been appointed as the new chief strategy officer.
Leon’s exit comes only a week after CEO Alex Mashinsky left the company. Mashinsky said he felt he was becoming a “distraction” to the troubled crypto lender trying to survive and that he was “very sorry” for what the community is going through.
CEL, the firm’s native token, is trading 4% lower today at $1.32, according to CoinMarketCap. It’s down 83% from its all-time highs.
The Decline of Celsius (CEL)
Just a few months ago, Celsius was still a true rockstar in the crypto lending industry. The company had more than $8 billion in loans to its clients, almost $12 billion in assets under management, and 1.7 million daily customers.
The firm achieved such fame by offering yields of up to 17% on deposited crypto assets like stablecoins, an APY not seen anywhere else.
Yet when the crypto market started crashing early this year, so did Celsius. In June, the company halted withdrawals when customers started fleeing the platform amid market turmoil.
A month later, Celsius filed for Chapter 11 bankruptcy, which revealed that the firm had $5 billion in debt and a $1.2 billion hole in its balance sheet.
On the Flipside
- No one from the Celsius saga has been prosecuted yet.
- It’s still unclear how or whether Celsius customers will receive their deposits back.
Why You Should Care
The Celsius downfall shows that even the biggest players in the market can fail – and rapidly. Investors should do thorough research before investing their funds.
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Read more about Celsius’ trading strategy that contributed to bankruptcy: