Alex Mashinsky, the CEO of troubled crypto lender Celsius Networks has been once again on the radar! As per the latest report from Financial Times, Mashinsky took over the control of the trading strategy several months before the bankruptcy.
Citing the reason for the U.S. Federal Reserve meeting, the Celsius CEO took control earlier in January 2022. As per unidentified sources, Mashinsky was worried about the interest rate hikes by the Fed. As a result, he reportedly sold users Bitcoins worth millions of dollars only to buy them the next day at higher prices.
Thus, Celsius Networks reportedly lost over $50 million through this move. One of the sources told Financial Times:
“He was ordering the traders to massively trade the book off of bad information. He was slugging around huge chunks of bitcoin”.
Additionally, the sources revealed that Celsius Networks also had GBTC holdings and was offered the chance to exit the position and cut the losses. However, CEO Mashinsky blocked the sale and allowed the losses to grow to $125 million.
