Beleaguered crypto lender Celsius Network Ltd. has lost another top member when co-founder Daniel Leon resigned this week.

The crypto lender who filed for bankruptcy earlier this year said in a statement Tuesday to Bloomberg News: “We confirm that Daniel Leon has resigned from his position at Celsius and is no longer part of the organization.”

His departure comes a week after the company’s chief executive, Alex Mashinsky, submitted a letter of resignation last week.

As stated in a press release from the company, the letter of resignation was delivered to the Special Committee of the Company’s Board of Directors.

In his resignation letter, Mashinsky said: “Effective immediately, please accept my resignation as CEO of Celsius Network Ltd, as well as my director and other positions at each of its direct and indirect subsidiaries, with the exception of my director position at Celsius Network Ltd.

CNBC reported, citing an internal email, that Lior Koren, previously the company’s global tax director, will take over and operate out of Israel.

Celsius filed for bankruptcy after leaving thousands of investors in limbo. The firm has also made risky bets before the cryptocurrency price crash. In July, the company disclosed a deficit of $1.19 billion.

In a recent update, the judge ruling the bankruptcy case appointed an outside examiner to investigate allegations of misconduct against the company and its management.”

Celsius’s business model was built to challenge traditional banks. He allowed people to invest in his cryptocurrencies and receive interest on them.

Celsius is currently accepting bids for its assets and may consider holding an auction on October 20, according to a statement on Monday.

According to Blockchain.News, based on a filing with the US Bankruptcy Court for the Southern District of New York, the deadline for the final offer is scheduled for October 17, but if necessary it will be pushed back until on October 20.

According to a source familiar with the matter, Sam Bankman-Fried, the founder and CEO of digital asset exchange FTX, is considering bidding for the assets of bankrupt lender Celsius Network.

A sale hearing is scheduled for November 1.

Celsius recently revealed that it did not plan to ask its debtors to pay off their outstanding loans during its Chapter 11 bankruptcy proceedings, Blockchain.News reported.

Celsius, founded in 2017, delivered interest-bearing products to crypto owners who deposited their funds, with returns of up to 18.6% per year. In turn, the company would lend CRYPTOCURRENCIES for profit.

Mashinsky co-founded Celsius Network along with Daniel Leon in 2017, and the company grew to become one of the most famous crypto lending platforms in the crypto world.

Before the freeze, Celsius was one of the largest crypto lending platforms, with more than $8 billion in customer loans and nearly $12 billion in assets under management. The company had attracted 1.7 million customers by offering returns of up to 17% on crypto deposits.

Image Source: Shutterstock