- Mashinsky personally directed individual trades.
- Celsius was given the bargain to get out of the lost trade.
- For nearly a month, the cryptocurrency market continued to move sideways.
Before a forthcoming US Federal Reserve meeting in January, Celsius Network CEO Alex Mashinsky assembled his investment team and informed them that he would be taking over the crypto lender’s trading strategy. The former telecoms entrepreneur claimed that because prices of well-known cryptocurrencies like bitcoin and ether had dropped from all-time highs, Celsius needed to take precautions against additional drops. He was confident that a hawkish decision would cause a drop in cryptocurrency prices.
Read CRYPTONEWSLAND on
google news
In an effort to shield Celsius from expected falls in the cryptocurrency market, Mashinsky reportedly personally oversaw individual trades and disregarded the advice of financial professionals. In one incident, the CEO of Celsius reportedly instructed the selling of Bitcoin (BTC) worth “hundreds of millions of dollars,” repurchasing the coins less than 24 hours later at a loss.
Mashinsky allegedly caused his work relationship with Frank van Etten, Celsius’s then-chief investment officer, to suffer as a result of his conduct. The two allegedly “clashed often” over trading tactics. The Celsius CEO “had a high belief of how severely the market may swing south,” a source familiar with the situation told the Financial Times, and he encouraged staff to “start minimizing risk” in whatever manner they could before the Fed meeting.
Mashinsky reportedly turned down a bargain offered to Celsius to get out of the losing trade because he thought the discount would eventually get smaller. At a 25% discount, when GBTC was trading, the firm eventually decided to close the position.
According to people with knowledge of the situation, the business lost between $100 million and $125 million on the GBTC trade alone. The Financial Times report follows news that Mashinsky is being looked into by a committee of unsecured creditors who allege that the CEO of Celsius regularly misled clients regarding the security of their money and the company’s business strategy.
Recommended News :
disclaimer read moreCrypto News Land (cryptonewsland.com) , also abbreviated as “CNL”, is an independent media entity — we are not affiliated with any company in the blockchain and cryptocurrency industry. We aim to provide fresh and relevant content that will help build up the crypto space since we believe in its potential to impact the world for the better. All of our news sources are credible and accurate as we know it, although we do not make any warranty as to the validity of their statements as well as their motive behind it. While we make sure to double-check the veracity of information from our sources, we do not make any assurances as to the timeliness and completeness of any information in our website as provided by our sources. Moreover, we disclaim any information on our website as investment or financial advice. We encourage all visitors to do your own research and consult with an expert in the relevant subject before making any investment or trading decision.
