Bankrupt crypto lender Celsius loses another top executive and co-founder, internal memo says

In this photo illustration, the Celsius Network logo is displayed on a smartphone screen beside Bitcoin cryptocurrencies.

According to people familiar with the matter and an internal memo seen by CNBC, S. Daniel Leon has stepped down as chief strategy officer of Celsius.

Leon was let go on Tuesday. The CEO of the company submitted a letter of resignation last week.

The email states that Lior Koren, the company's global tax director, is taking over and will be operating out of Israel. Leon resigned in an email from Celsius.

Celsius, which is based in New Jersey, was in the news in June after it froze customer accounts.

Celsius had more than $8 billion in loans to clients and $12 billion in assets under management prior to the freeze. The firm had 1.7 million customers.

Hedge funds and others willing to pay an even higher yield would be given funds by Celsius. According to internal documents shared with CNBC, it invested in other high-riskcryptocurrencies.

The company filed for Chapter 11 in July with a large hole in its balance sheet.