{"id":162255,"date":"2022-08-16T21:38:01","date_gmt":"2022-08-16T21:38:01","guid":{"rendered":"https:\/\/precoinnews.com\/?p=162255"},"modified":"2022-08-16T21:38:01","modified_gmt":"2022-08-16T21:38:01","slug":"celsius-ceo-personally-directed-crypto-trades-months-before-bankruptcy-report","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/crypto\/celsius-ceo-personally-directed-crypto-trades-months-before-bankruptcy-report\/","title":{"rendered":"Celsius CEO personally directed crypto trades months before bankruptcy: Report"},"content":{"rendered":"

Celsius CEO Alex Mashinsky reportedly \u201ctook control\u201d of trading strategy at the crypto lending firm amid January rumors the United States Federal Reserve planned to hike interest rates.<\/p>\n

According to a Tuesday report from the Financial Times, Mashinsky personally directed individual trades and overruled financial experts in an effort to protect Celsius from anticipated declines in the crypto market. The Celsius CEO reportedly ordered the sale of \u201chundreds of millions of dollars\u201d worth of Bitcoin (BTC) in one instance, rebuying the coins less than 24 hours later at a loss.<\/p>\n

Mashinsky\u2019s actions also reportedly affected his professional relationship with Frank van Etten, the then chief investment officer of Celsius, with whom he \u201cclashed repeatedly\u201d over trading strategy. The Financial Times reported a person familiar with the matter said the Celsius CEO \u201chad a high conviction of how bad the market could move south\u201d and wanted staff \u201cto start cutting risk\u201d in any way possible prior to the Fed meeting.<\/p>\n

Reports at the time suggested the Federal Reserve could implement rate hikes in January, but the central bank did not confirm it would be doing so until March. While there was still some volatility in the crypto market following the announcement, the price of major tokens didn\u2019t crash for two months, with BTC falling below $30,000 in May and later under $20,000 in June.<\/p>\n

One of the Individuals reportedly familiar with the events at Celsius said Mashinsky was \u201cnot running the trading desk\u201d \u2014 seemingly not taking a heavy hand on trades \u2014 but rather expressing his opinions on the crypto market to influence strategy. Another person reportedly said the Celsius CEO was \u201cslugging around huge chunks of Bitcoin\u201d and ordering trades based on bad information.<\/p>\n

The Celsius CEO reportedly used his authority to block sales of investment vehicles linked to cryptocurrencies, including shares of Grayscale\u2019s Bitcoin Trust, or GBTC. The news outlet reported there was a deal available aimed at cutting Celsius\u2019 losses on GBTC \u2014 the company held 11 million shares worth roughly $400 million in September 2021 \u2014 but Mashinsky refused it, eventually selling for a $100\u2013$125 million loss in April 2022.<\/p>\n

Related: <\/em><\/strong>Celsius Network coin report shows a balance gap of $2.85 billion<\/em><\/strong><\/p>\n

Celsius filed for Chapter 11 bankruptcy in July after closing debts owed to Compound, Aave and Maker. Cointelegraph reported on Tuesday that the crypto lending platform was on track to run out of money by October, with a report suggesting the company\u2019s debt was closer to $2.8 billion against its bankruptcy filing claims of a $1.2 billion deficit.<\/p>\n

Cointelegraph reached out to Celsius and Alex Mashinsky, but did not receive a response at the time of publication.<\/em><\/p>\n

Source: Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Celsius CEO Alex Mashinsky reportedly \u201ctook control\u201d<\/p>\n","protected":false},"author":3,"featured_media":162254,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"yoast_head":"\nCelsius CEO personally directed crypto trades months before bankruptcy: Report - Pre Coin News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/precoinnews.com\/crypto\/celsius-ceo-personally-directed-crypto-trades-months-before-bankruptcy-report\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Celsius CEO personally directed crypto trades months before bankruptcy: Report - Pre Coin News\" \/>\n<meta property=\"og:description\" content=\"Celsius CEO Alex Mashinsky reportedly \u201ctook control\u201d\" \/>\n<meta property=\"og:url\" content=\"https:\/\/precoinnews.com\/crypto\/celsius-ceo-personally-directed-crypto-trades-months-before-bankruptcy-report\/\" \/>\n<meta property=\"og:site_name\" content=\"Pre Coin News\" \/>\n<meta property=\"article:published_time\" content=\"2022-08-16T21:38:01+00:00\" \/>\n<meta name=\"author\" content=\"mediabest\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/precoinnews.com\/wp-content\/uploads\/2022\/08\/Celsius-CEO-personally-directed-crypto-trades-months-before-bankruptcy-Report.jpg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"mediabest\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/precoinnews.com\/crypto\/celsius-ceo-personally-directed-crypto-trades-months-before-bankruptcy-report\/\",\"url\":\"https:\/\/precoinnews.com\/crypto\/celsius-ceo-personally-directed-crypto-trades-months-before-bankruptcy-report\/\",\"name\":\"Celsius CEO personally directed crypto trades months before bankruptcy: Report - 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