• FAQ
  • Contact Us
  • Sitemap
Newsletter
Cripto News
  • Home
  • Bitcoin
  • Blockchain
  • Business
  • News
  • Guide
No Result
View All Result
  • Home
  • Bitcoin
  • Blockchain
  • Business
  • News
  • Guide
No Result
View All Result
Cripto News
No Result
View All Result
Home Business

Celsius CEO Was Controlling Trades Leading Up To Bankruptcy

admin by admin
in Business
0
Celsius CEO Was Controlling Trades Leading Up To Bankruptcy
189
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter

A report has claimed that Alex Mashinsky had taken over control of trading strategies at Celsius in the months leading up to the firm’s widely publicized insolvency issues and eventual collapse. The firm filed for Chapter 11 bankruptcy in July.

Related articles

Crypto.com Expansion Continues, Now Registered In Canada

Crypto.com Expansion Continues, Now Registered In Canada

Ripple Targets Japan-Thailand Remittance Corridor

Ripple Targets Japan-Thailand Remittance Corridor

Personally Directing Crypto Trades

Sources familiar with Celsius and the events surrounding its collapse have stated that CEO Alex Mashinsky was “slugging around huge amounts of Bitcoin” and ordering trades based on incomplete or insufficient information. Mashinsky had taken control of the trading strategy amidst rumors that the United States Federal Reserve was planning on hiking interest rates.

The report states that Mashinsky was personally directing trades and overruling financial experts as he looked to protect Celsius from declining crypto markets. The CEO also ordered the selling off of millions of dollars worth of Bitcoin at one point, only to re-purchase the coins at a loss 24 hours later.

Repeated Clashes

The report also shed light on the effects of Mashinky’s reckless strategy, which significantly impacted the CEO’s professional relationship with Frank van Etten, the chief investment officer at Celsius. The report claimed that Mashinsky repeatedly clashed with Etten over the trading strategies employed by the former.

According to an individual close to the matter, the CEO was convinced that the market could go south in a big way and wanted the company’s staff to begin cutting risks in any way possible before the Fed meeting.

Looming Rate Hikes

At the time, several reports were suggesting that the Federal Reserve was mulling implementing rate hikes in January. However, there was no confirmation on this by the central bank until March. Following the announcement, there was some volatility in the market. The market crash did not occur for two months when BTC fell below the $30,000 level in May and below $20,000 a month later.

Conflicting Versions

There are conflicting versions about the events at Celsius and CEO Mashinky’s role in them. Some versions seem to suggest that the CEO was not running the trading desk or taking a heavy hand on trades but was simply expressing his opinion on the prevailing market conditions to influence trading strategy.

However, other versions seem to suggest that the CEO was moving around significant amounts of Bitcoin and trading based on bad information. He had also reportedly blocked sales of investment vehicles linked to cryptocurrencies, such as shares of Grayscale’s Bitcoin Trust, with news outlets reporting that there was a deal aimed at cutting Celsius’ losses on the Bitcoin trust. However, the CEO refused the deal and then had to sell them at a loss of around $100 million in April.

The Fall Of Celsius

Celsius eventually filed for Chapter 11 bankruptcy in July after it had closed debts owed to Aave, Compound, and Maker, with the platform on track to run out of money by October. Reports have claimed that Celsius’ debts are closer to $2.8 billion against its bankruptcy claim of a $1.2 billion deficit.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice. 

Share76Tweet47

Related Posts

Crypto.com Expansion Continues, Now Registered In Canada

Crypto.com Expansion Continues, Now Registered In Canada

by admin

Crypto.com has acquired the approval of the Ontario Securities Commission to become the first global cryptocurrency platform to be legally...

Ripple Targets Japan-Thailand Remittance Corridor

Ripple Targets Japan-Thailand Remittance Corridor

by admin

In a new partnership with SBI Remit, Ripple Net has launched a remittance payment service for the Japan-Thailand corridor.  Ripple...

Valour provides crypto ETPs to clients of major German banks

Valour provides crypto ETPs to clients of major German banks

by admin

German banks Comdirect and Onvista will use crypto products provided by Valour for their retail clients. Both banks will have...

Upland expands internationally with a sell-out in Rio de Janeiro

Upland expands internationally with a sell-out in Rio de Janeiro

by admin

Upland, the layer-1 metaverse that allows you to mint and own properties that mirror the real world, expands internationally into...

What The Negative Bitcoin Funding Rates Say About Investor Outlook

What The Negative Bitcoin Funding Rates Say About Investor Outlook

by admin

Bitcoin funding rates have remained low even when the price of the digital asset has rebounded. The trend for the...

Load More
  • Trending
  • Comments
  • Latest
Valour provides crypto ETPs to clients of major German banks

Valour provides crypto ETPs to clients of major German banks

Former Top Regulators Chris Giancarlo, Brian Brooks Invest In Crypto Risk Monitoring Startup Solidus Labs

Former Top Regulators Chris Giancarlo, Brian Brooks Invest In Crypto Risk Monitoring Startup Solidus Labs

Upland expands internationally with a sell-out in Rio de Janeiro

Upland expands internationally with a sell-out in Rio de Janeiro

What The Negative Bitcoin Funding Rates Say About Investor Outlook

What The Negative Bitcoin Funding Rates Say About Investor Outlook

Want To Learn More Aabout Lynqyo (LNQ)? Here Is A Detailed Guide For This Upcoming Crypto Token | NewsBTC

Want To Learn More Aabout Lynqyo (LNQ)? Here Is A Detailed Guide For This Upcoming Crypto Token | NewsBTC

How to Sell Bitcoin in 2019 | Bitcoin ATMs, Cash, Exchanges Guide

How to Sell Bitcoin in 2019 | Bitcoin ATMs, Cash, Exchanges Guide

Ethereum Whales Shift Their Holding Into Reputable Exchanges

Ethereum Whales Shift Their Holding Into Reputable Exchanges

Bitcoin MVRV Ratio Is Back Below 1 As Average Holder Slips Into Loss

Bitcoin MVRV Ratio Is Back Below 1 As Average Holder Slips Into Loss

Will Ethereum Complete Bearish Pattern And Plunge To $1,000?

Will Ethereum Complete Bearish Pattern And Plunge To $1,000?

Bitcoin Approaching $22K, Market Gets New Reason to Celebrate?

Bitcoin Approaching $22K, Market Gets New Reason to Celebrate?

What The Negative Bitcoin Funding Rates Say About Investor Outlook

What The Negative Bitcoin Funding Rates Say About Investor Outlook

Major NFT Marketplace X2Y2 Changes Royalties Policy, Here’s Why It Is Crucial

Major NFT Marketplace X2Y2 Changes Royalties Policy, Here’s Why It Is Crucial

How to Sell Bitcoin in 2019 | Bitcoin ATMs, Cash, Exchanges Guide

How to Sell Bitcoin in 2019 | Bitcoin ATMs, Cash, Exchanges Guide

How To Buy Bitcoin? | BTC Guide For Beginners

How To Buy Bitcoin? | BTC Guide For Beginners

How To Store Bitcoins | Where Are Bitcoins Stored?

How To Store Bitcoins | Where Are Bitcoins Stored?

Bitcoin Pros and Cons | Advantages and Disadvantages of BTC

Bitcoin Pros and Cons | Advantages and Disadvantages of BTC

Is It Safe To Use Bitcoin in 2020?

Is It Safe To Use Bitcoin in 2020?

Crypto.com Expansion Continues, Now Registered In Canada

Crypto.com Expansion Continues, Now Registered In Canada

The latest news in the world of cryptocurrencies

Categories

  • Bitcoin
  • Blockchain
  • Business
  • Guide
  • News
  • Sitemap
  • Contact Us
  • FAQ

© 2022 Cripto News All Rights Reserved

No Result
View All Result
  • Contact Us
  • Homepages
  • Business
  • Guide

© 2022 Cripto News All Rights Reserved