Celsius co-founder Daniel Leon resigns amid revelations of $56M cash-out

Oct 07,2022
Celsius co-founder Daniel Leon resigns amid revelations of $56M cash-out

Daniel Leon, the co-founder of the bankrupt digital currency lender Celsius Network, resigned as the chief strategic officer of the enterprise a week after the departure of CEO Alex Mashinsky.

Leon, together with Mashinsky and Nuke Goldstein, started Celsius in 2017 and has been an executive of the bank ever since. Like Marcine Leoni, he strongly protested against banks or financial institutions such as banks. He claimed that these institutions were stolen from the majority of people and were given to a very small number of people.

According to several news media, Leon has resigned. Its position will be taken over by another Jew, Lior Koren, who previously served as the worldwide tax director of the company.

An announcement released by the company to the media confirmed that "Daniel Leon has resigned from his position at ℃ and is no longer a part of the organization.".

Leon owns 32600 Celsius preferred shares.

Celsius is one of the largest digital currency lenders in the world. In October 2021, the company's consumer wealth under management will reach $25 billion. However, with the coming of the "data encryption winter" this year, all this has changed, and it is aggravated by the bankruptcy of the two digital currencies UST and LUNA, which Mashinsky has placed the most bets on. In its bankruptcy application in July, the company revealed that it owed $4.7 billion to customers and had only $167 million in cash on hand.

The reason why Leon resigned was that just before the bank went bankrupt, the new key point of cash outflow of relevant executives was exposed. According to a financial report submitted in New York this week, the co founders Leon, Mashinsky and Goldstein obtained a total of more than 56 million dollars from May to June this year, just before the enterprise Leng Jie withdrew cash and then went bankrupt.

As previously announced by the Financial Times, Marcine Leoni withdrew $10 million in May. However, a new statement shows that its co founders withdrew a lot; Goldstein received $13 million and Leon received $7 million. The two enterprises also cashed US $7.8 million and US $4 million CEL tokens respectively, each indicating that the tokens are "collateral"

This withdrawal will be closely checked by the independent auditor appointed by the trustee of the Ministry of Justice to see how the private detective operated before bankruptcy.

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