Celsius Co-founder Dan Leon Resigns After Mashinsky’s Exit

Shlomi Daniel Leon and fellow co-founder Alex Mashinsky have left their top positions as Celsius battles bankruptcy

article-image

Alex Mashinsky, Celsius CEO; Source: Shutterstock

share

key takeaways

  • Group tax director Lior Koren reportedly replaces Celsius’ chief strategy officer
  • Mashinsky’s resignation came after a committee believed his retention was “unacceptable”

Insolvent crypto lender Celsius has lost another of its top executives about a week after co-founder Alex Mashinsky stepped down as CEO.

Shlomi Daniel Leon, co-founder and chief strategy officer at the firm, called it quits this week, CNBC reported Tuesday, citing an internal memo. 

Leon will reportedly be replaced by Israel-based Lior Koren, group tax director at Celsius. Koren has worked at the firm for just over 18 months, according to his LinkedIn

Mashinsky’s resignation took place after a committee representing Celsius’ unsecured creditors called for his removal. They found that retaining him as CEO was “unacceptable” and that new leadership was vital, a court filing revealed. 

Hoboken, New Jersey-based Celsius filed for bankruptcy on July 13, moving to restructure the business after being forced to freeze withdrawals on its platform. 

Since then, the creditors’ committee has investigated Mashinsky and other insiders for their business decisions and whether they were aware of Celsius’ impending downfall. 

It isn’t clear yet whether Leon’s resignation is linked to the same investigation. Celsius didn’t return Blockworks’ request for comment by press time. 

The platform’s native token, CEL, collapsed more than 85% between May and mid-June, from around $2 to $0.283, as its liquidity issues came to light. CEL has since rebounded more than 350%, now trading for $1.34.

A court filing from Sept. 5 shows Leon owns 32,600 shares of Celsius’ common stock. 

Celsius co-founder exits less than two weeks before asset auction

Celsius user Tiffany Fong had earlier tweeted about co-founder Leon leaving. Fong previously shared a leaked recording of an all-hands meeting where Mashinsky outlined plans for the lender’s comeback. 

Much has been speculated about the financial behavior of the top executives. The Financial Times reported on Sunday that Mashinsky withdrew $10 million from Celsius just weeks before customer funds were frozen. 

Details about insider transactions will soon be submitted in court as part of the lender’s financial disclosures. The next hearing is scheduled for Oct. 6. 

Celsius is currently accepting bids for its assets, with a final bid deadline set for Oct. 17. A sale hearing will be held on Nov, 1, a filing shows.

Fellow bankrupt lender Voyager auctioned its remaining assets last month, with Sam Bankman-Fried’s FTX US securing the winning bid worth $1.422 billion.

Reports indicate Bankman-Fried is ready to do the same with Celsius. The crypto billionaire tweeted Sunday that his goal in buying up lenders’ assets is to pay fair market prices, with a mind to make users as whole as possible.

“If we were to get involved in Celsius, it would be the same,” Bankman-Fried wrote.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the Forward Guidance newsletter.

Get alpha directly in your inbox with the 0xResearch newsletter — market highlights, charts, degen trade ideas, governance updates, and more.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 18 - 20, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

recent research

Unlocked Advisory-min.png

Research

This report distills Blockworks Advisory’s research on incentive programs and their analysis, offering a foundation for designing future initiatives and advancing industry-wide standards. By highlighting key lessons and methodologies, we aim to empower protocols to make informed, data-driven decisions.

article-image

The company did about 2.5 times the amount of crypto-backed collateral financing in November compared to the rest of 2024, exec says

article-image

Programmable yield, seamless swaps and decentralized control are the hallmarks of a new stablecoin model

article-image

Crypto is “really exciting,” former SEC Commissioner Paul Atkins said in a podcast interview last year

article-image

Bitcoin is now the “seventh most valuable asset in the world by market cap, just behind the likes of Google and Amazon,” GSR’s Brian Rudick said

article-image

Many analysts expected bitcoin to top $100K before year-end, though it’s been on a post-election tear

article-image

Will investors take a 10% lower return to get access to a regulated investment wrapper?