Fun

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

News Feed - 2022-08-17 07:08:33

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.” The founder and CEO of Celsius Network, Alex Mashinsky.


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. Tags in this story Alex Mashinsky, Bad Trades, Bankruptcy, Bankruptcy Court, bankruptcy protection, Bitcoin, Bitcoin (BTC), BTC, Celsius, celsius 3AC, Celsius bankruptcy, Celsius CEO, celsius chapter 11 bankruptcy, Celsius customers, Celsius Network, celsius three arrows capital, Celsius Trading, Celsius trading strategy, celsius voyager, CEO of Celsius, financial hardships, FT Report, Insolvencies, report, trading strategy, Voyager bankruptcy


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. Jamie Redman


Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,700 articles for Bitcoin.com News about the disruptive protocols emerging today. Embattled Crypto Lender Hodlnaut Seeks Judicial Management in Order to Rehabilitate the Company NEWS | 7 hours ago Coin Center Says OFAC"s Tornado Cash Ban "Exceeds Statutory Authority," Plans to "Engage" With US Watchdog NEWS | 10 hours ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleRon Paul Insists US Economy’s ‘Collapse Will Come,’ Former Congressman Says Liquidation Is ‘Absolutely Necessary’ Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItDraft Law Regulating Aspects of Crypto Taxation Submitted to Russian Parliament


A bill updating Russia’s tax law to incorporate provisions pertaining to cryptocurrencies has been filed with the State Duma, the lower house of parliament. The legislation is tailored to regulate the taxation of sales and profits in the country’s market ... read more.Bill ‘On Digital Currency’ Caps Crypto Investments for Russians, Opens Door for Payments Privacy-Centric Monero Plans for July Hard Fork, Plans Include Ring Signature, Bulletproof Upgrade Digital Ruble ‘Much Needed,’ Russia’s Central Bank Says, Won’t Delay Testing Microbt Reveals Latest Bitcoin Mining Rigs — Machines Produce up to 126 TH/s With Custom 5nm Chip Design

News Feed

Bill targeting illicit use of crypto passes US House: Law Decoded
Josh O"Sullivan4 hours agoBill targeting illicit use of crypto passes US House: Law DecodedLegislation focuses on preventing illicit cryptocurrency activities while safeguarding consumer choice.2286 Total viewsListen to
Bitcoin, Ethereum Technical Analysis: ETH Back Above $1,700 as ‘Merge’ Date Confirmed
Bitcoin, Ethereum Technical Analysis: ETH Back Above $1,700 as "Merge" Date Confirmed Ethereum was back above $1,700 in Thursday’s session, as the date for the long-awaited
Chinese Authorities Prosecute Alleged Masterminds Behind MDC Pyramid Scheme
Chinese Authorities Prosecute Alleged Masterminds Behind MDC Pyramid Scheme Chinese authorities in Rong County recently said they have prosecuted eight individuals accused of being
New CoinMarketCap Crypto AI Sends Altcoins like MIND of Pepe to the Moon
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Italian Luxury Fashion House Dolce & Gabbana Sells NFT Collection for $5.7 Million
Italian Luxury Fashion House Dolce & Gabbana Sells NFT Collection for $5.7 Million On September 30, the Italian luxury fashion house Dolce & Gabbana sold an NFT collection for $5.7
Dogecoin Breakout Expected Within The Next 7 Days: Analyst
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Ana Paula Pereira2 hours agoBinance.US exchange volume slumps amidst crisisOn Sep. 16, exchange volume stood at $5.09 million on Binance.US amidst executive departures and ongoing regulatory scrutiny.686 Total views42 To
Increasing Ethereum network use strengthens the case for ETH price rally to $3K
Marcel Pechman3 hours agoIncreasing Ethereum network use strengthens the case for ETH price rally to $3KSurging Ethereum network activity and growing adoption of layer-2 scaling solutions pave the way for an ETH price ra
Dogecoin Repeating History? This Setup Led To 150% Gains
Este artículo también está disponible en español. A new technical chart shared by crypto analyst Cas Abbé (@cas_abbe) on X is showing a recurring bullish pattern in Doge
Arijit Sarkar2 hours agoHong Kong advances CBDC pilot, bringing e-HKD trials to phase 2Phase one was dedicated to full-fledged payments, programmable payments, offline payments, tokenized deposits and the settlement of W
Korean Police Ask Crypto Exchanges to Freeze Luna Foundation Guard’s Assets
Korean Police Ask Crypto Exchanges to Freeze Luna Foundation Guard"s Assets The South Korean police have reportedly launched an investigation into possible embezzlement involving a
Crypto trader turns $3K into $46M in one month as PEPE price soars
Zoltan Vardai7 hours agoCrypto trader turns $3K into $46M in one month as PEPE price soarsThe savvy cryptocurrency trader is up over 15,000 fold on his initial $3,000 Pepe investment in just one month.9639 Total views18