According to a recent report released Tuesday, Alex Masinsky, the Israeli-American founder and CEO of the Celsius Network, was responsible for the company’s trading strategy It is. The report, citing several people familiar with the matter, states that Mashinsky sold millions of dollars worth of bitcoin in anticipation of buying it cheap; except after the CEO allegedly made this bet, the bitcoin market followed the opposite trend and the major crypto assets accumulated some gains.
People familiar with the Celsius situation say Mashinsky was trading on “bad information”
On Tuesday, the Financial Times (FT) reported on impoverished and bankrupt crypto lender Celsius and its CEO. Citing people familiar with the situation, the FT reportexplained that months before the company filed for bankruptcy protection, Mashinsky “took control of Celsius’ trading strategy.” Allegedly, Celsius’ founder and CEO made a number of bad bets using large amounts of bitcoin (BTC) and other assets.
“He ordered traders to buy and sell large amounts of books from bad deals,” said one of the people quoted in the report.” He was overdosing on huge chunks of bitcoin,” the anonymous source added. However, another person quoted in the report, FT, explained that CEO Celsius’ perspective may have been voiced, but that person insisted that “(Mashinsky) was not running a trading desk.”
Despite objections from the man himself, people familiar with the matter under anonymity told the FT that Masinsky repeatedly “clashed” with the company’s former CIO. The tension arose over Masinski’s alleged involvement in certain Celsius transactions. ‘He had a high degree of certainty about how bad the market could get,’ another anonymous source said in a report published on August 16. The person added: “He wanted Celsius to start cutting as much risk as possible.”
The accusations centered on Mashinsky follow customers of the crypto lender writing letters to bankruptcy court and petitioning authorities to get their funds back. The customers explained that Celsius had frozen their funds, stating that they were in financial distress and that it was a dire emergency to get their funds back. For example, Celsius customer Brandon Lawrencewrote:
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’m in deep depression and not sure if I can pull myself out of this.
Five more days ago, a Ripple Labs spokesperson spoke with Reuters and explained that distributed ledger company Ripple is “interested in learning about Celsius and its assets.” Celsius is part of a multitude of crypto companies in trouble in 2022, as Voyager Digital,Babel Finance
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