Breaking: CEL Token Plunges as Celsius CEO Resigns

Alex Mashinsky, chief executive officer of embattled cryptocurrency lending company Celsius Network, has submitted a resignation letter, according to a Tuesday press release.

The price of the Celsius Network (CEL) token has plunged as much as 10% on the announcement. The cryptocurrency is currently trading at $1.36 on the FTX exchange. The CEL token is down 82.98% from its all-time high, according to CoinMarketCap data.

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Mashinsky says that he will remain focused on rallying the community behind a recovery plan following his resignation. He will continue to work with the company during its reorganization process.

As reported by U.Today, Celsius Network officially filed for bankruptcy in mid-July, which happened just a month after the company unexpectedly froze withdrawals and caused a market panic. Mashinsky confirmed that the company had a $1.2 billion hole in its balance sheet.

Celsius Network owes half a million credits roughly $5 billion. It managed as much as $12 million worth of customers' funds as of May.

Earlier this month, Vermont regulators accused the company of misleading investors about its financial health. The company was allegedly sitting on "catastrophic" losses despite claiming that it was profitable.

Mashinsky founded Celsius back in 2017 as interest-bearing accounts for retail users. Last month, the Financial Times reported that the Israeli-American entrepreneur took control of the company's trading strategy several months before the bankruptcy.