Celsius co-founder and strategy head Leon resigns from bankrupt crypto lender

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Illustration shows Celsius Network logo and representations of cryptocurrencies

(Reuters) – Celsius Network’s co-founder and chief strategy officer Daniel Leon has stepped down, the bankrupt crypto lender said on Tuesday, joining a wave of executive departures from beleaguered digital asset companies.

The announcement comes a week after chief executive officer Alex Mashinsky’s resignation. Leon’s departure was first reported by CNBC.

Hoboken, New Jersey-based Celsius filed for Chapter 11 bankruptcy in July, a month after freezing withdrawals citing extreme market conditions.

Lenders such as Celsius boomed in lockstep with the surge in popularity of major cryptocurrencies like Bitcoin, as they offered interest rates much higher than traditional banks and easy access to loans.

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However, the collapse of digital tokens terraUSD and luna, coupled with a tough macroeconomic environment, tested their business model and eroded customers’ optimism.

Voyager Digital Ltd, another major U.S. crypto lender, also filed for bankruptcy in July.

(Reporting by Niket Nishant in Bengaluru; Editing by Krishna Chandra Eluri)