Co-founder Daniel Leon Resigns from Bankrupt Crypto Lender Celsius

Co-founder Daniel Leon Resigns from Bankrupt Crypto Lender Celsius

• Co-founder and chief strategy officer of Celsius, Daniel Leon resigns.
• Lior Koren the company’s global director to take over the position.
• Youtuber, Tiffany Fong hints about his resignation to Celsius.

The bankrupt crypto lender, Celsius saw the resignation of its co-founder and chief strategy officer, S. Daniel Leon. According to people familiar with the matter and the internal memo, Leon announced his resignation on Tuesday.

A reporter from Financial Times shared a Twitter post that affirmed his departure from Celsius.

Celsius cofounder Daniel Leon has left the bankrupt crypto lender, the company confirms:

“We confirm that Daniel Leon resigned from his position at Celsius and is no longer part of the organization.”

His resignation follows that of former CEO Alex Mashinsky last week

— kadhim (＾ｰ^)ノ (@kadhim) October 4, 2022

Subsequently, Lior Koren, the company’s global tax director will take over Leon’s position and will operate from Israel, as per the email shared with CNBC.

However, Leon’s resignation did not come as a surprise since Youtuber Tiffany Fong hinted that another resignation was on the way addressing Celsius in a tweet. In addition to that, Fong previously shared two leaked audio of All-hand Internal Meetings at Celsius.

Moreover, in one of the audio, it was recorded how Celsius Network CEO Alex Mashinsky who stepped down from his position a few weeks ago, suggested a custody-focused recovery plan, dubbed “Kelvin” to resuscitate its bankrupt state.

Notably, Celsius was one of the largest crypto lending platforms with more than $8 billion in loans to clients and almost $12 billion in assets under management, nonetheless, it fell to its current plight due to the dominant crypto winter.

Prior to the freezing of Celsius, it is reported that the firm had attracted 1.7 million customers by offering yields as high as 17% on crypto deposits. In addition to that, the firm reportedly had a structure where it would lend customers’ crypto out to counterparties willing to pay sky-high interest rates to borrow it. And then it would share with its user.

Nonetheless, this structure came tumbling down with the liquidity crunch. Consequently, Celsius applied for Chapter 11 bankruptcy in July with a $1.2 billion hole in its balance sheet.

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