Report: Celsius CEO Accused of Controlling Crypto Company’s Trading Scheme and Placing Bad Bets

Report: Celsius CEO Accused of Controlling Crypto Company's Trading Scheme and Placing Bad Bets

According to a recent report published on Tuesday, the Israeli-American founder and CEO of Celsius Network, Alex Mashinsky, was in charge of the company’s trading strategy. The report, citing multiple people familiar with the matter, said Mashinsky sold millions of dollars’ worth of bitcoin in anticipation to buy bitcoin cheap. Except after the CEO allegedly placed this bet, bitcoin markets followed the opposite trend, and the leading crypto asset accumulated some gains.

People Familiar With the Celsius Situation Say Mashinsky Was Trading on ‘Bad Information’

On Tuesday, the Financial Times (FT) reported on the embattled and bankrupt crypto lender Celsius and the company’s CEO. FT’s report citing people familiar with the situation explained that months before the company filed for bankruptcy protection, Mashinsky “took control of Celsius trading strategy.” Allegedly, the founder and CEO of Celsius made a number of bad bets with large sums of bitcoin (BTC) and other assets.

“He was ordering the traders to massively trade the book off of bad information,” one of the people quoted in the report said. “He was slugging around huge chunks of bitcoin,” the anonymous source added. However, another person FT quoted in the report, explains that the Celsius CEO’s perspective may have been said out loud, but the individual insisted “[Mashinsky] was not running the trading desk.”

Despite the contrary opinion from the individual, people familiar with the matter speaking under anonymity, told FT that Mashinsky repeatedly “clashed” with the company’s former CIO. The tensions stirred over Mashinsky allegedly involving himself in specific Celsius trades. “He had a high conviction of how bad the market could move south,” another anonymous source said in the report published on August 16. “He wanted us to start cutting risk however Celsius could,” the person added.

The accusations revolving around Mashinsky follow the crypto lending company’s customers writing letters to the bankruptcy court, and pleading with the authorities to get their funds back. Customers explained that they were suffering from financial hardships over Celsius freezing their funds and said it was a dire emergency to get their funds back. For instance, Celsius customer Brandon Lawrence wrote:

I am one of the little guys … It was my nest egg. Now when I go to work, I drink water and eat any scraps I can find for lunch … I am in deep depression and do not know if I can pull myself out of this.

Additionally, five days ago, a Ripple Labs spokesperson spoke with Reuters and explained that the distributed ledger firm Ripple was “interested in learning about Celsius and its assets.” Celsius is part of a large number of trouble crypto companies in 2022, as Voyager Digital, Babel Finance, Three Arrows Capital (3AC), Hodlnaut, and Vauld have all seen financial hardships this year. Most of these companies have sought help from financial regulators or the courts in order to remedy the insolvencies.

What do you think about the report that says Alex Mashinsky was taking charge of the company’s trading strategy? Let us know what you think about this subject in the comments section below.

Share:

Share on facebook
Facebook
Share on twitter
Twitter
Share on pinterest
Pinterest
Share on linkedin
LinkedIn

Follow Us

Most Popular

Get The Latest Updates

Subscribe To Our Weekly Newsletter

No spam, notifications only about new products, updates.
On Key

Related Posts

Bitcoin above 20K AGAIN! Is Bitcoin Price Bullish Today?

The crypto market is moving still in a sideways trend. Trading cryptocurrencies is being favored by crypto enthusiasts rather than simply buying and holding. The reason for this is that consolidation phases are much more predictable thanks to technical analysis. Crypto traders are loving the current crypto dynamics in the market. After Bitcoin fell to

Breaking: Do Kwon Linked 3,313 Bitcoin To Be Seized? S. Korea Deepens Probe

Trouble for Do Kwon, Terra co-founder seems to be increasing after Interpol issued Red Notice against him. In the latest hit, South Korean authorities have moved on to deepen their probe against the alleged crypto fugitive. Do Kwon to lose his Bitcoins? According to reports, South Korean prosecutors are moving… Read more

Bitcoin Skyrockets As Stock Market Crashes, Is It Breaking Correlation

The crypto market is experiencing a surprise bounce. Bitcoin has rallied from the $18K-$19K range to cross the $20K mark. It has increased by over 5% in the last 24 hours and is currently trading at $20.1K.  However, since the stock markets are dumping, Bitcoin looks to break the correlation…. Read more

Bitcoin and Crypto Defy Wall Street Meltdown With Strong Rally

Wall Street started the week in a correction mode with all three top U.S. indices correcting 1% on Monday, September 26. However, Bitcoin and the broader crypto market have made a surprising move northwards with the BTC price shooting past $20,000 levels. With the recent BTC move, more than $14… Read more