According to a recent report published on Tuesday, the Israeli-American founder and CEO of Celsius Network, Alex Mashinsky, was in charge of the companys 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.
On Tuesday, the Financial Times (FT) reported on the embattled and bankrupt crypto lender Celsius and the companys CEO. FTs 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 CEOs 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 companys 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 companys 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 companys trading strategy? Let us know what you think about this subject in the comments section below.
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.
Image Credits: Shutterstock, Pixabay, Wiki Commons
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.
- 'Shrinkflation'? Blame the Fed - Newsmax - March 22nd, 2024 [March 22nd, 2024]
- Ron Paul Tells Tucker Carlson the Exact Date There Was a Coup and We Lost Our Government - Mediaite - March 20th, 2024 [March 20th, 2024]
- Ron Paul: It Dawned On Me That The Republic Was Gone When Allen Dulles Was Appointed To The Warren ... - RealClearPolitics - March 20th, 2024 [March 20th, 2024]
- The rise and - possible - fall of David Shafer - The Atlanta Journal Constitution - June 2nd, 2023 [June 2nd, 2023]
- Yes, that was Paul Hornung on Packers' sideline in Ice Bowl - Packers.com - June 2nd, 2023 [June 2nd, 2023]
- Cap Times Idea Fest 2023 save the dates | Paul Fanlund ... - The Capital Times - June 2nd, 2023 [June 2nd, 2023]
- Folks tell Ron Keller his memories of growing up in Naperville could ... - Positively Naperville - June 2nd, 2023 [June 2nd, 2023]
- The Man Who Invented the Trillion-Dollar Coin - New York Magazine - June 2nd, 2023 [June 2nd, 2023]
- Opinion | Why Texas Republicans Are Targeting Renewable Energy - The New York Times - June 2nd, 2023 [June 2nd, 2023]
- States that have produced the most NBA Finals champions - MaxPreps - June 2nd, 2023 [June 2nd, 2023]
- All Community Pro-Am starting holes on Saturday, Sunday - McCook Daily Gazette - June 2nd, 2023 [June 2nd, 2023]
- The World and Everything in It: June 2, 2023 - WORLD News Group - June 2nd, 2023 [June 2nd, 2023]
- Sen. Rand Paul staffer's parents speak out after he was 'brutally ... - March 31st, 2023 [March 31st, 2023]
- Rand Paul staff member stabbed in D.C., has life-threatening injuries - March 31st, 2023 [March 31st, 2023]
- Aide to Senator Rand Paul critically wounded in Washington DC stabbing ... - March 31st, 2023 [March 31st, 2023]
- The Antiwar Movement Roars Back to Life | CNSNews - March 4th, 2023 [March 4th, 2023]
- Ron Pauls Retirement Advice: Do This One Thing ASAP - March 4th, 2023 [March 4th, 2023]
- The Ron Paul Institute for Peace and Prosperity : The Antiwar Movement ... - March 4th, 2023 [March 4th, 2023]
- Feb. 19: Ron Paul, Tulsi Gabbard to Speak at Anti-War Rally ... - February 20th, 2023 [February 20th, 2023]
- 5 Things You May Not Know About Ron Paul : NPR - NPR.org - February 20th, 2023 [February 20th, 2023]
- The Real Disinformation Was The Russia Disinformation Hoax - February 5th, 2023 [February 5th, 2023]
- The Ron Paul Institute for Peace and Prosperity : The Real ... - February 5th, 2023 [February 5th, 2023]
- Paul McCartneys Decade-Long Creative Surge Post-Beatles To Be Explored In Man On The Run From Oscar Winner Morgan Neville - Deadline - February 5th, 2023 [February 5th, 2023]
- Ron Paul hospitalized after he appears to suffer stroke - New York Post - January 30th, 2023 [January 30th, 2023]
- Ron Paul Issues an Urgent Warning to Retirement Savers - January 30th, 2023 [January 30th, 2023]
- The Ron Paul Institute for Peace and Prosperity : Zelenskyy Regime to ... - January 30th, 2023 [January 30th, 2023]
- XPONENTIAL FITNESS, INC. : Entry into a Material Definitive Agreement, Creation of a Direct Financial Obligation or an Obligation under an Off-Balance... - January 15th, 2023 [January 15th, 2023]
- Ron Paul: 'Twitter Files' Make It Clear, We Must Abolish The FBI - December 28th, 2022 [December 28th, 2022]
- Ron Paul: A Tale Of Two Midterms | ZeroHedge - December 28th, 2022 [December 28th, 2022]
- Retiring History Theatre artistic director Ron Peluso looks back at fond moments from his 27 years on the job - St. Paul Pioneer Press - December 26th, 2022 [December 26th, 2022]
- Ron Paul | Biography, Education, Books, & Facts | Britannica - December 21st, 2022 [December 21st, 2022]
- The Ron Paul Institute for Peace and Prosperity : Is Washingtons ... - December 21st, 2022 [December 21st, 2022]
- The Ron Paul Institute for Peace and Prosperity : Europe Commits ... - October 25th, 2022 [October 25th, 2022]
- Ron Paul 2012 presidential campaign - Wikipedia - October 23rd, 2022 [October 23rd, 2022]
- Nevada's micronation of Molossia has a sounder currency than the dollar - Washington Times - October 19th, 2022 [October 19th, 2022]
- Dune Sound Team on Finding "The Voice," Using "Fake Documentary Realism" & the Rescue of Paul Atreides - Below the Line |... - October 19th, 2022 [October 19th, 2022]
- Paul LePage has softened his stance on immigration. Or has he? - Bangor Daily News - October 19th, 2022 [October 19th, 2022]
- 38 Celeb Couples Who Have Been Together More Than 20 Years, Which Is Like, 150 Years In Normal People Time - BuzzFeed - October 19th, 2022 [October 19th, 2022]
- Ron Paul: It's Time To Tell Biden We Say 'No!' To Nuclear War OpEd - Eurasia Review - October 15th, 2022 [October 15th, 2022]
- The Moment the Republican Party Lost Control - The New Republic - October 15th, 2022 [October 15th, 2022]
- Paul Ryan: Trumps unelectability will be palpable by 2024 - The Hill - October 15th, 2022 [October 15th, 2022]
- Governor Ron DeSantis Appoints Fourteen to the Florida Rehabilitation Council for the Blind - Governor Ron DeSantis - October 15th, 2022 [October 15th, 2022]
- Paul Newman recalls losing his only son Scott to addiction in memoir: I never thought it would be fatal - Fox News - October 15th, 2022 [October 15th, 2022]
- How To Resist CBDCs5 Ways You Can Opt Out of This Dystopian Future - International Man - October 15th, 2022 [October 15th, 2022]
- Bob Doucette: 2022 campaign a Wild West of ideas of how to govern Oklahoma - Tulsa World - October 15th, 2022 [October 15th, 2022]
- Warm start to the week, then chilly temps later; thunderstorm chance Tuesday evening - MPR News - October 15th, 2022 [October 15th, 2022]
- Ron Paul: Will Italys Election Foreshadow US Midterms? - Libertarian Party - October 8th, 2022 [October 8th, 2022]
- With POTUS non-endorsement endorsement of Ron DeSantis, the race for Florida Governor is over - Florida Politics - October 8th, 2022 [October 8th, 2022]
- Miranda Webb: Trauma, anarchy and perilous life on the run from Northeast Ohio to Mexico - Akron Beacon Journal - October 8th, 2022 [October 8th, 2022]
- Ben Sasse and the battle over what kind of conservative leads the GOP - Washington Examiner - October 8th, 2022 [October 8th, 2022]
- Slayden carries Wood River past Freeburg and back into the playoffs - St. Louis Post-Dispatch - October 8th, 2022 [October 8th, 2022]
- 'The water came up so fast': The heroes of Tonya Court and Wisconsin Street - Naples Daily News - October 8th, 2022 [October 8th, 2022]
- Wisconsin Republicans still fixated on 2020 election in 2022 - PBS Wisconsin - October 8th, 2022 [October 8th, 2022]
- The Ron Paul Institute for Peace and Prosperity : School Shutdowns ... - September 29th, 2022 [September 29th, 2022]
- Fans Discover Ron Paul Delivered Late Pop Icon Selena - September 29th, 2022 [September 29th, 2022]
- Flashback: Ron Paul Railed Against the FBI in 1988 - NOQ Report - September 29th, 2022 [September 29th, 2022]
- Paul Sullivan: Chicago White Sox need to shake up their clubhouse culture by dealing 1 or more of their core players this offseason - The Killeen... - September 29th, 2022 [September 29th, 2022]
- Tim Ryan Says Americans Need To Give Up Gas Cars as He Drives Around Ohio in Gas Guzzlers - Washington Free Beacon - September 29th, 2022 [September 29th, 2022]
- Pianist Paul Barnes and Native flutist Ron Warren to premiere piece Monday in Lincoln - Lincoln Journal Star - September 27th, 2022 [September 27th, 2022]
- POLITICO Playbook PM: Mitch McConnell and the tale of two moderate Dems - POLITICO - POLITICO - September 27th, 2022 [September 27th, 2022]
- Cam'ron and A-Trak 'U Wasn't There' Review - slantmagazine - September 27th, 2022 [September 27th, 2022]
- As the Economy Collapsed, Why Were Economists Silent? - The Epoch Times - September 27th, 2022 [September 27th, 2022]
- CBDCs, SDRs, and the Re-Monetization of Gold Here's What Happens Next - International Man - September 27th, 2022 [September 27th, 2022]
- Lessons Learned: Ron Paul's Warnings Against the War on Terror Stand True - Libertarian Party - September 17th, 2022 [September 17th, 2022]
- KRULL COLUMN: Maybe it's an oath they don't understand - Evening News and Tribune - September 17th, 2022 [September 17th, 2022]
- 9 Tips to Tackle Your Financial Goals and Still Have Fun - Money Talks News - September 17th, 2022 [September 17th, 2022]
- 10 States With the Most Homes at Risk of Wildfire - Money Talks News - September 17th, 2022 [September 17th, 2022]
- 5 Handy Keyboard Shortcuts That Make Internet Life Easier - Money Talks News - September 17th, 2022 [September 17th, 2022]
- What we know about Texas and Florida's transport of migrants - Axios - September 17th, 2022 [September 17th, 2022]
- 15 States With the Highest Union Participation Rates - Money Talks News - September 17th, 2022 [September 17th, 2022]
- Winter is Coming But the 2022 Ram 1500 Isn't Worried - MotorBiscuit - September 17th, 2022 [September 17th, 2022]
- '8 Simple Rules' Turns 20: 10 Big Names Who Appeared on the Sitcom - TV Insider - September 17th, 2022 [September 17th, 2022]
- Tech and finance moguls are putting money and weight behind Trump with a brain Ron DeSantis - Fortune - September 11th, 2022 [September 11th, 2022]
- What Is Peter Thiel Thinking? - The New Republic - September 11th, 2022 [September 11th, 2022]
- 7 of the Most Beautiful Places to Retire in America - Money Talks News - September 11th, 2022 [September 11th, 2022]
- 3 Ways to Lower the Rising Risk of Electrical Fires - Money Talks News - September 11th, 2022 [September 11th, 2022]
- Inflation Is State-Sponsored Terrorism - SchiffGold - September 11th, 2022 [September 11th, 2022]
- Quick hits: Pujols clouts 696th homer to tie for fourth all-time as Cardinals rally to win - St. Louis Post-Dispatch - September 11th, 2022 [September 11th, 2022]
- It's no coincidence that the most successful democracies are constitutional monarchies - The Telegraph - September 11th, 2022 [September 11th, 2022]
- "Distinguished," "loyal," "failure": Denver reflects on the retirement of Chief Paul Pazen and its hopes for new Chief... - September 6th, 2022 [September 6th, 2022]