Struggling lending platform Celsius is to re-deliver former chief financial officer Rod Bolger and pay him about $92,000 a month, pro-rated over a term of at least six weeks. The embattled lender says he wants Bolger to help him navigate the chapter’s court cases as a guide, according to a motion filed with the Southern District of New York.
“Because of Mr. Bolger’s familiarity with Debtors’ businesses, Debtors have requested, and Mr. Bolger has agreed pending Court approval, to continue to provide advisory and consulting services to Debtors in accordance to a consultancy agreement,” the submission read. “In consideration for the consulting services rendered by Mr. Bolger, the Debtors agree to pay Mr. Bolger the sum of CAD$120,000 per month, prorated for partial months.”
The move goes on to mention that throughout Bolger’s tenure, he has led efforts to stabilize the industry on the turbulent market volatility this year, guiding the monetary aspects of the industry and playing a leadership role. company. Ultimately, it’s up to the Southern District of New York to decide whether or not to allow Bolger back on board with Celsius. There’s a Zoom listen scheduled for Monday, August 8, to imagine the move.
Bolger, a former chief financial officer of Royal Bank of Canada and divisions of Bank of America, was with the company for 5 months so far before stepping down on June 30, about 3 weeks after the platform suspended all withdrawals, citing “extreme market conditions.” While working full-time with the company as chief financial officer, this move features he had a base salary of $750,000 and a cash bonus based on performance of up to 75% of its base, as well as inventory and token picks, bringing the highest of its overall revenue stream to around $1.3 million.
So the company appointed Chris Ferraro, then head of economic development plans, research and investor family members for Celsius, as chief financial officer. A few days after his appointment, the company filed for a chapter.
Once a titan of the crypto lending world, Celsius is in ongoing legal cases dealing with claims that it once operated a Ponzi scheme by paying first depositors with money given to it by new customers.
At its peak in October 2021, CEO Alex Mashinsky said the crypto lender had $25 billion in assets under control. Now Celsius is down to $167 million “cash,” which it says will provide “sufficient liquidity” to bolster operations through the restructuring process. Celsius owes clients about $4.7 billion, according to its chapter submission.
It also indicated that Celsius had more than 100,000 collectors, some of whom lent money to the platform without any collateral to revive the association. His list of top 50 unsecured collectors includes Sam Bankman-Fried’s trading company, Alameda Research, as well as a finance company founded in the Cayman Islands.
Retail traders have filed court demands to help them recover some of their lost assets, with some saying their livelihood savings have been successfully burned.
A CPA and Celsius investor with large capital locked up on the Celsius platform filed an objection on Tuesday to prevent the move through Celsius from reinstating its former chief financial officer.