Share this article
Celsius suffered from widely publicized insolvency issues as crypto prices crashed then filed for Chapter 11 bankruptcy in July.
Mashinsky Allegedly Traded Celsius Funds
Alex Mashinsky intervened on Celsius Network’s trading decisions in the months leading up to the firm’s collapse, a Tuesday Financial Times report has claimed.
Track live crypto price of 10000+ coins!
According to the report, the Celsius CEO took reign over the firm’s trading strategy in January ahead of a Federal Reserve meeting. According to unnamed sources familiar with the matter, Mashinsky feared that crypto prices would suffer if the Fed hiked interest rates and decided to overrule senior traders with decades of experience. In one instance, the sources claimed, he ordered the crypto lender’s trading team to sell hundreds of millions of dollars worth of Bitcoin, and the firm bought back the funds the following day at a loss. The report alleges that Celsius lost $50 million through trading in January alone.
The sources also said that Mashinsky had multiple clashes with the firm’s former chief investment officer Frank van Etten over trading decisions and his intervention in the firm’s trading strategy. Van Etten left Celsius in February.
The Financial Times report comes after months of turbulence at Celsius. In June, it emerged that the crypto lender was facing an insolvency crisis when it halted customer withdrawals. The firm filed for Chapter 11 bankruptcy a month later, revealing a $1.2 billion hole in its balance sheet stemming from lost bets on Terra, Lido’s staked-Ethereum token, Grayscale’s GBTC fund, and loans to the now-defunct hedge fund Three Arrows Capital.
Disclosure: At the time of writing, the author of this piece owned ETH and several other cryptocurrencies.
Download MAXBIT Android App, Your best source of all crypto news!
Share this article: