Alex Mashinsky, the Israeli-American founder and CEO of Celsius Network, oversees the company’s trading strategy, according to a new report released Tuesday. Citing multiple people familiar with the matter, the report said Mashinsky sold millions of dollars worth of bitcoin in hopes of buying it at a low price. The Bitcoin market followed the opposite trend, with the leading crypto asset accumulating some gains, except after the CEO’s alleged bet.
People familiar with Celsius say Mashinsky was trading with ‘bad information’
On Tuesday, the Financial Times (FT) reported on troubled and bankrupt cryptocurrency lender Celsius and the company’s CEO. The Financial Times, citing people familiar with the matter, said Mashinsky “had control of the Celsius trading strategy” months before the company filed for bankruptcy protection. The founder and CEO of Celsius allegedly made multiple false bets with large amounts of Bitcoin (BTC) and other assets.
“He ordered traders to trade the book in bulk to get rid of bad information,” one person was quoted as saying in the report. An anonymous source added: “He is dealing with a lot of bitcoin.” However, the Financial Times reported on Another person cited in explained that the Celsius CEO’s views may have been spoken out, but the individual insisted “[Mashinsky] There is no operating trading desk. “
Despite the individual’s contrary opinion, a person familiar with the matter told the FT on condition of anonymity that Masinski had “collaborated” with the company’s former chief information officer on several occasions. Masinski was allegedly involved in a specific Celsius deal, sparking tensions. “He’s a firm believer in how badly the market could move south,” another anonymous source said in a report published Aug. 16. The person added, “He wants us to start reducing risk, but Celsius can do it. “
The allegations surrounding Mashinsky come after clients of the crypto lending company wrote to bankruptcy court and pleaded with authorities to get their funds back. The client explained that they had suffered financial hardship as a result of Celsius freezing funds and said it was an emergency to get the funds back. For example, Celsius customer Brandon Lawrence wrote:
I’m one of those little guys…here are my savings. Now, when I go to work, I drink water, eat whatever leftovers I can find at lunch…I’m in a deep depression and don’t know if I can get out of it.
Additionally, a Ripple Labs spokesperson spoke to Reuters five days ago, explaining that distributed ledger company Ripple is “interested in learning about Celsius and its assets.” Celsius is part of a raft of troubled cryptocurrency companies in 2022, as Voyager Digital, Babel Finance, Three Arrows Capital (3AC), Hodlnaut, and Vauld have all experienced financial difficulties this year. Most of these companies have turned to financial regulators or the courts for help in resolving bankruptcy.
What do you think of the report that Alex Mashinsky is in charge of the company’s trading strategy? Let us know what you think about this topic in the comments section below.
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