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Bankrupt Crypto Lending Platform Celsius Withdraws Motion to Hire CFO Back at $92K per Month

UTC by John K. Kumi · 2 min read
Bankrupt Crypto Lending Platform Celsius Withdraws Motion to Hire CFO Back at $92K per Month
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According to the original motion, Bolger worked as a full-time CFO at the company with a base salary of $750,000.

Court documents filed in the Southern District of New York on Friday have disclosed that the embattled crypto lending platform Celsius has withdrawn its motion to bring back its former CFO Rod Bolger at $92,000 a month. According to the original motion, Bolger worked as a full-time CFO at the company with a base salary of $750,000. He also had a cash bonus of up to 75% of his base salary subject to his performance. In addition, he had stock and token options, meaning his total income range was around $1.3 billion, and technically still on the company’s payroll. It is, however, unclear whether the company would have compensated him with $62,500 in addition to the $92,000 consulting fee requested by Celsius.

According to the filing, he notified his debtors that he was voluntarily terminating his employment on June 30, 2022. As required by his Termination Notice and the terms of his Employment Agreement, he was required to give Debtors eight weeks’ notice, which is done. It is important to note that he still serves as an employee to the debtors. The withdrawal of the motion came after Keith Suckno, a CPA and Celsius investor had argued that not enough details were given for why Bolger’s services were needed for the bankruptcy proceedings.

In the original motion, Celsius stated that it needed the former CFO for his familiarity with debtors’ business. Also, during his time in the company, he acted as a leader and guided the financial aspect of the business.

Suckno believes that Bolger misstated the financial condition and liquidation of the company in a blog post published five days before it suspended withdrawals as a result of extreme market conditions.

Some of the allegations against Celsius is that it was running a Ponzi Scheme by using money obtained from new users to pay early investors. In October 2021, Celsius CEO Alex Mashinsky mentioned that it had $25 billion in assets under management. However, it now has $167 million in cash on hand. This, he believes, will provide enough liquidity to support the restructuring process. According to reports, it has over 100,000 creditors. Some of them have no collateral to back up the arrangements.

Business News, Cryptocurrency news, News
John K. Kumi
Author John K. Kumi

Excellent John K. Kumi is a cryptocurrency and fintech enthusiast, operations manager of a fintech platform, writer, researcher, and a huge fan of creative writing. With an Economics background, he finds much interest in the invisible factors that causes price change in anything measured with valuation. He has been in the crypto/blockchain space in the last five (5) years. He mostly watches football highlights and movies in his free time.

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