Do Kwon (Terra) Arrested & Alex Mashinsky (Celsius) Resigns0 (0)
Terraform Labs Founder Do Kwon Arrested
The arrest warrants against Do Kwon and his associates have been issued by the South Korean government. These warrants are valid for a year, and they have been issued by the 2nd Division of Financial Investigation. Prosecutors are working with Interpol to try to find Kwon and his associates.
Kwon and his colleagues are accused of violating the rules of the capital market. He was barred from leaving the country in June and July, and he was questioned by prosecutors at local cryptocurrency exchanges. He denied that the UST stablecoin he helped create was a scam, but critics say the project was rotten from the inside.
The arrest warrant is valid for one year, but it is still possible for Korean prosecutors to search for Kwon even if he lives in another country. The South Korean government has asked Interpol to help them search for him, and the fugitive will be arrested if they find him.
Terraform Labs founder Do Kwon has been arrested on suspicion of violating the Capital Markets Act. In addition to Do Kwon, two other employees of Terraform Labs were also arrested. The arrest warrant was first reported by Chosun Ilbo, a South Korean newspaper.
Alex Mashinsky Resigns as Celsius CEO and Bankruptcy Proceedings
Alex Mashinsky is an American-Israeli entrepreneur and business executive. He was the founder of Celsius Network, which was a cryptocurrency lending platform. However, on July 13, 2022, the company filed for bankruptcy. It is unclear whether Mashinsky will make another attempt at cryptocurrencies. In the meantime, he is an inspiration to many aspiring entrepreneurs.
In the past, Mashinsky has been lauded for his success in the cryptocurrency market. He even defended the company on Reddit, saying that it was safer than banks. The company has since suffered massive losses. It faces a $1.2 billion hole in its balance sheet. Hundreds of small-time investors have written letters to the bankruptcy judge.
A bankruptcy filing in June led to a suspension of all withdrawals while Celsius’s board members worked to create a viable restructuring plan for its creditors. A special committee was formed, including Alan Carr and David Barse. The new board will be tasked with putting the company back on track.
Celsius’s bankruptcy filing prompted the company to hire Chris Ferraro as interim CEO and chief restructuring officer. He was previously the company’s chief financial officer. He spent almost two decades at JPMorgan Chase.
Alex Mashinsky Resignation
Celsius Network’s CEO Alex Mashinsky resigned on Monday, September 27th, 2022. The news has caused a significant downturn in the native token CEL, which fell nearly 10% in the last hour. The company’s stock price is trading at $1.38, down 10% from its high of $1.68 an hour earlier.
The former Celsius CEO has been a prominent pitchman for high-yield investments. However, his decision to step down comes amid a restructuring process. As a result, the crypto lender has appointed former CFO Chris Ferraro as interim CEO and chief restructuring officer. Celsius’s creditor committee believes Ferraro can effectively oversee the company’s affairs and assets, and looks forward to further dialogue with him.
The resignation letter, which was submitted to the Celsius Network Board of Directors on Monday, was accompanied by an oblique challenge to find a withdrawal denial from Mashinsky. In the end, the CEO decided to step down in order to avoid further commotion. The news that Mashinsky is no longer employed with the company has led to a flurry of speculation about his future.