Shalini Nagarajan

<div id="highlights-block_633d4702d9cea" class="highlights">
 <ul>
 <li>Group tax director Lior Koren reportedly replaces Celsius&#8217; chief strategy officer</li>
 <li>Mashinsky’s resignation came after a committee believed his retention was “unacceptable”</li>
 </ul>
 
</div>



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 <a href="https://www.cnbc.com/2022/10/04/celsius-strategy-chief-s-daniel-leon-is-leaving-company-sources-say.html" target="_blank" rel="noreferrer noopener">reported</a> Tuesday, citing an internal memo.&nbsp;



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 <a href="https://www.linkedin.com/in/lior-koren-71338035/?originalSubdomain=il" target="_blank" rel="noreferrer noopener">LinkedIn</a>. 



Mashinsky’s resignation took place after a committee representing Celsius’ unsecured creditors <a href="https://cms.blockworks.co/celsius-chief-pressured-by-creditors-as-ftx-eyes-assets/" target="_blank" rel="noreferrer noopener">called for his removal</a>. They found that retaining him as CEO was “unacceptable” and that new leadership was vital, a court filing revealed. 



Hoboken, New Jersey-based Celsius <a href="https://cms.blockworks.co/celsius-to-file-for-bankruptcy-imminently-report/" target="_blank" rel="noreferrer noopener">filed for bankruptcy</a> on July 13, moving to restructure the business after being forced to <a href="https://cms.blockworks.co/celsius-lending-platform-suspends-withdrawals-and-transfers/" target="_blank" rel="noreferrer noopener">freeze withdrawals</a> on its platform.&nbsp;



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



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.&nbsp;



The platform&#8217;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 <a href="https://cases.stretto.com/public/x191/11749/PLEADINGS/1174909052280000000003.pdf" target="_blank" rel="noreferrer noopener">court filing</a> from Sept. 5 shows Leon owns 32,600 shares of Celsius’ common stock.&nbsp;



<h3 class="wp-block-heading">Celsius co-founder exits less than two weeks before asset auction</h3>



Celsius user Tiffany Fong had earlier <a href="https://twitter.com/TiffanyFong_/status/1577328616790233089" target="_blank" rel="noreferrer noopener">tweeted</a> about co-founder Leon leaving. Fong previously shared a <a href="https://cms.blockworks.co/celsius-banks-on-future-with-new-name-kelvin/" target="_blank" rel="noreferrer noopener">leaked recording</a> of an all-hands meeting where Mashinsky outlined plans for the lender’s comeback.&nbsp;



Much has been speculated about the financial behavior of the top executives. The Financial Times reported on Sunday that Mashinsky <a href="https://cms.blockworks.co/celsius-founder-withdrew-10m-before-freeze-to-pay-taxes-report/" target="_blank" rel="noreferrer noopener">withdrew $10 million</a> from Celsius just weeks before customer funds were frozen.&nbsp;



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.&nbsp;



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 <a href="https://cases.stretto.com/public/x191/11749/PLEADINGS/1174910042280000000007.pdf" target="_blank" rel="noreferrer noopener">filing</a> 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.



<a href="https://www.bloomberg.com/news/articles/2022-09-27/crypto-billionaire-bankman-fried-eyeing-bid-for-celsius-assets" target="_blank" rel="noreferrer noopener">Reports</a> indicate Bankman-Fried is ready to do the same with Celsius. The crypto billionaire <a href="https://twitter.com/SBF_FTX/status/1576619657561133058" target="_blank" rel="noreferrer noopener">tweeted</a> 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.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Start your day with top crypto insights from David Canellis and Katherine Ross. <a href="https://blockworks.co/newsletter/empire">Subscribe to the Empire newsletter</a>.

lior koren