Financial Times: Celsius CEO Mashinsky Traded Company Bitcoin Personally

Financial Times: Celsius CEO Mashinsky Traded Company Bitcoin Personally

3 months ago

The troubled crypto lender may have not been helped by its CEO's trading decisions.

Financial Times: Celsius CEO Mashinsky Traded Company Bitcoin Personally
According to the Financial Times, Alex Mashinsky personally took over Celsius' trading desk at times.

The report details an instance where Mashinsky single-handedly ordered the sale of "hundreds of millions of dollars" of BTC and re-bought at a loss only a day later.

More information details Mashinky's relationship with former chief investment officer Frank van Etten. According to an FT source, the two had opposing views on trading strategy, with Mashinsky having a "high conviction of how bad the market could move south." However, another source said that Mashinksy, while being vocal about his views, did not influence trading decisions.

Moreover, the Celsius CEO reportedly blocked sales of crypto-linked investment vehicles like GBTS shares. According to the FT, Celsius could have cut its GBTC losses in September, but Mashinsky refused and later had to settle for a $100–$125 million loss in April 2022.

The Block also reports that a bankruptcy court judge approved Celsius’s plans to sell its mined Bitcoin. The company’s mined Bitcoin had previously been used to pay for operational expenses and could now help the company plug its financial hole.
According to recent projections, Celsius will be technically bankrupt by the end of October.
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