Home Business Celsius is trying to rehire its CFO at $92,000 a month, docs say

Celsius is trying to rehire its CFO at $92,000 a month, docs say

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Celsius is trying to rehire its CFO at $92,000 a month, docs say

Struggling lending platform Celsius wants to bring back former chief financial officer Rod Bolger and pay him about $92,000 a month, pro-rated over a period of at least six weeks. The embattled lender says it needs Bolger to help navigate bankruptcy proceedings as an adviser, according to a movement 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 consulting agreement,” the filing reads. “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 motion goes on to say that during Bolger’s tenure, he led efforts to stabilize the company during turbulent market volatility this year, guiding the financial aspects of the business and acting as a business leader. Ultimately, it’s up to the Southern District of New York to decide whether to allow Bolger to join Celsius. A Zoom hearing is scheduled for Monday, August 8 to consider the motion.

Bolger, a former CFO of Royal Bank of Canada and divisions of Bank of Americawas previously with the company for five months before stepping down on June 30, about three weeks after the the platform has suspended all withdrawals, citing “extreme market conditions”. While working full-time with the company as CFO, this motion shows he had a base salary of $750,000 and a performance-based cash bonus of up to 75% of his base, in addition to stock options and tokens, bringing the top of his total income to around $1.3 million.

The company then appointed Chris Ferraro, then head of financial planning, analysis and investor relations for Celsius, as chief financial officer. A few days after his appointment, the company filed for bankruptcy.

Once a titan of the crypto lending world, Celsius is in bankruptcy proceedings and face down claims he was running a Ponzi scheme by paying the first depositors with the money received from the new users.

At its peak in October 2021, CEO Alex Mashinsky said the the crypto lender had $25 billion in assets under management. Now Celsius has gone down to $167 million “cash on hand”, which it says will provide “sufficient liquidity” to support operations during the restructuring process. Celsius owes its users approximately $4.7 billion, according to his bankruptcy filing.

This filing also shows that Celsius has more than 100,000 creditors, some of whom lent money to the platform without any collateral to back up the arrangement. Its list of top 50 unsecured creditors includes Sam Bankman-Fried’s trading company, Alameda Research, as well as a Cayman Islands-based investment firm.

Retail investors have filed petitions with the judge to help them recover some of their lost assets, with some claiming that their savings were effectively wiped out.

CPA and Celsius investor with large balance trapped on Celsius platform filed a complaint on Tuesday challenge Celsius’s motion to reinstate its former chief financial officer.

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