Alex Mashinski allegedly dominated trading decisions at Celsius, resulting in a $50 million loss in January. financial times report.
After the January 2022 meeting of the US Federal Reserve, Celsius CEO Alex Mashinski is said to have stepped in to lead the company’s trading strategy.In anticipation of the hawkish outcome and his belief that cryptocurrency prices will crash, he A trading team selling hundreds of millions of dollars worth of bitcoin. He neglected to consult with internal financial experts and did not value Celsius’ holdings.
An unnamed team member told the Financial Times:
“He was ordering traders to trade bad information in bulk. He surrounded huge amounts of Bitcoin.”
As a result of Mashinsky’s decision, Celsius had to buy back Bitcoin a day later, recording a loss of $50 million. His trading decisions are said to have been based on his knowledge and intuition, and he was not guided by outside experts.
Mashinsky’s autocratic approach to dealing with the company at the time caused internal conflict with Celsius. Chief Investment Officer Frank Van Etten had to leave in February after just four months on the job.
Complicating matters, including Mashinsky’s deal decision, a $2 billion mismanagement and a vulnerable asset-tracking system, Celsius forced Celsius to file for bankruptcy in July. At the time, Mashinski alleged that Celsius’ assets grew rapidly beyond their investment capacity and that they made “certain poor decisions regarding the deployment of assets.”
More fingers pointing towards Celsius CEO
Alex Mashinski has been indicted by several investigations as the cause behind the collapse of Celsius.
Officially statementCelsius unsecured lenders allege Mashinsky deliberately misled the public. According to reports, Mashinsky falsely promised through public videos and messages that customer funds were safe, and a month later, I filed for bankruptcy.
The Department of Financial Protection and Innovation (DFPI) has also prosecuted Mashinsky following a cease and desist order against Celsius. Mr. Mashinsky, along with his company, were accused of providing incomplete information about the risks associated with the use of interest-bearing “earning programs.” As a result, prior to filing for bankruptcy, many were informed that Celsius would not be able to meet the massive withdrawal request.
