Mode CEO quits following controversial Bitcoin cashback announcement
The chief executive of UK fintech Mode has resigned two months after the company faced backlash for a controversial announcement.
Mode announced that chief executive Ryan Moore has resigned after just nine months in the role. Company founder Jonathan Rowland said he had “cleared the decks” following a damaging saga which saw major UK retailers Boots, Homebase and Ocado deny an announcement that Mode would provide Bitcoin cashback to customers.
In an statement Rowland said: “I would like to thank Ryan for his contribution to Mode over his time as CEO. I wish him well in all his future endeavours.”
He struck a different tone on his personal Twitter account, writing: “I am fully committed to the future and have cleared the decks to take control of the business.”
Rowland confirmed that he has “taken over the day to day operations of the company” and will become Executive Chairman.
In November 2021, Mode claimed it would partner with over 40 retailers, including major household brands, to provide Bitcoin cashback to customers. At the time chief executive Ryan Moore said the scheme would put “Bitcoin into the hands of millions of customers across the UK.”
Mode was forced to issue a “clarification” on the London Stock Exchange a day later following denials from Boots, Ocado and Homebase. The fintech start up admitted that the partnerships had been organised “through a number of intermediary affiliate platforms” without the companies being approached directly. At the time, Boots told City A.M. that it was seeking advice from its legal team.
When Mode announced the exit of its chief executive on Wednesday the London Stock Exchange issued four price monitoring extensions, used to regulate extreme volatility, as share prices went haywire after falling 16 per cent at the open. Yesterday, shares jumped by as much as 3.78 per cent before closing flat.
Company stocks have been in steady decline since its IPO, tumbling by 66.39 per cent since an October 2020 float.
At the end of last year, Mode formed partnerships with THG and LK Bennett to provide customers with cash back in bitcoin. Mode has also secured a partnership to provide crypto payroll services which would see employees paid part of their salary in Bitcoin.
Read more: LK Bennett to offer customers crypto cash back