The embattled credit platform Celsius wants to bring ex-CFO Rod Bolger back and pay him around $92,000 a month, prorated over a period of at least six weeks. The embattled lender says it needs Bolger to help it navigate the bankruptcy process as an advisor, according to a filing filed with the Southern District of New York.
“Because of Mr. Bolger’s familiarity with the Debtors’ business, the Debtors have applied, and subject to Court approval, Mr. Bolger has consented to continue to provide advisory and advisory services to the Debtors pursuant to an advisory agreement,” the filing reads. “In consideration for the consulting services provided by Mr. Bolger, the debtors agree to pay Mr. Bolger the sum of CAD$120,000 per month, pro rata for months begun.”
The filing goes on to say that during Bolger’s tenure, he led efforts to stabilize the business during the turbulent market volatility this year by overseeing the financial aspects of the business and serving as head of the company. Ultimately, it’s up to New York’s Southern District to decide whether to allow Bolger to board Celsius. There is a Zoom hearing on Monday 8th August to consider the application.
Bolger, a former CFO of Royal Bank of Canada and divisions of Bank of America, was previously at the company for five months before resigning on June 30, about three weeks after the platform halted all payouts citing “extreme market conditions.” While he served full-time as CFO for the company, this filing shows he had a base salary of $750,000 and a performance-related cash bonus of up to 75% of his base, in addition to stock and token options, peaking his total earnings range at around 1.3 million dollars.
The company then installed Chris Ferraro, then Celsius’ head of financial planning, analysis and investor relations, to the post of CFO. The company filed for bankruptcy a few days after his appointment.
Once a titan of the crypto lending world, Celsius is in a bankruptcy filing and is fighting off claims that it operated a Ponzi scheme by paying early depositors with the money it received from new users.
At its peak in October 2021, CEO Alex Mashinsky said the crypto lender had $25 billion in assets under management. Now Celsius has shrunk to $167 million in “cash” which it says will provide “sufficient liquidity” to support operations through the restructuring process. Celsius owes its users around $4.7 billion, according to the bankruptcy filing.
This filing also reveals that Celsius has more than 100,000 creditors, some of whom have lent the platform cash with no collateral to back the agreement. The list of the top 50 unsecured creditors includes Sam Bankman-Fried’s trading firm Alameda Research and a Cayman Islands-based investment firm.
Individual investors have filed pleas with the judge to help them recover some of their lost holdings, with some saying their life savings have been virtually wiped out.
A CPA and Celsius investor with a large balance trapped on the Celsius platform filed an appeal on Tuesday to challenge Celsius’ request to reinstate its former CFO.