Filings say Celsius is trying to reset its CFO to $92,000 a month

The beleaguered lending platform Celsius wants to bring back former CFO Rod Bolger and pay about $92,000 a month, split over at least six weeks. The embattled lender says he needs Bulger to help him get through bankruptcy proceedings as a counsellor, according to an application filed with New York’s Southern District.

“Given Mr. Bulger’s familiarity with the debtors’ business, the debtors have requested, and Mr. Bulger has agreed, pending court approval, to continue to provide advisory and advisory services to the debtors pursuant to an advisory agreement,” the lawsuit states. “In return for Mr. Bolger’s advisory services, the debtors agree to pay Mr. Bolger $120,000 per month, divided into partial months.”

The proposal goes on to say that during Bolger’s tenure, he led efforts to stabilize the business during the turbulent market volatility this year, directing the financial aspects of the business and serving as the company’s leader. Ultimately, it is up to the Southern District of New York to decide whether to allow Bolger to join in with the Celsius. A zoom session is set for Monday, August 8 to look into the movement.

Bolger, the former chief financial officer of Royal Bank of Canada and the Bank of America divisions, had previously worked with the company for five months before resigning on June 30, about three weeks after the platform paused all withdrawals, citing “harsh market conditions.” While working full time with the company as CFO, this move shows that he earned a base salary of $750,000 and a performance-based cash bonus of 75% of his base, plus stock and token options, putting him at the top of his total income to about 1.3 Million dollars.

The company then appointed Chris Ferraro, then head of financial planning, analysis and investor relations at Celsius Corporation, to the position of Chief Financial Officer. Within days of his appointment, the company filed for bankruptcy.

Celsius, once a giant in the crypto-lending world, is in the process of bankruptcy and is facing allegations that it was operating a Ponzi scheme by paying early depositors with money it obtained from new users.

At its peak in October 2021, CEO Alex Mashinsky said that the crypto lender held $25 billion in assets under management. Now, C has fallen to $167 million in “cash on hand,” which it says will provide “ample cash” to support operations during the restructuring process. Celsius owes its users about $4.7 billion, according to its bankruptcy filing.

This filing also shows that Celsius has more than 100,000 creditors, some of whom lent the platform in cash without any collateral to support the arrangement. The top 50 unsecured creditors include Alameda Research, a subsidiary of Sam Bankman-Fried trading firm, as well as an investment firm based in the Cayman Islands.

Retail investors petitioned a judge to help them recover some of their lost possessions, with some saying their life savings had been virtually wiped out.

A CPA and Celsius investor with a large stake trapped on the Celsius platform filed an objection Tuesday to challenge Celsius’ proposal to reinstate the former chief financial officer.

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