According to reports, Celsius’s Alex Mashinsky assumed control of the company’s trading strategy.

In July, Celsius filed for chapter 11 bankruptcy with over $4 billion in consumer debt. The company has been the focus of many investigations over the last month, including those conducted by Canadian authorities.

The collapse of the 2022 cryptocurrency industry was mostly centered on crypto loan firms. Among the worst affected were Celsius Network, Voyager, and Three Arrows Capital. Even though the market seems to have partially recovered, the businesses are still in choppy seas.

According to Financial Times reporting, Alex Mashinsky, CEO of Celsius Network, took over management of his company and the trading strategy. According to reports, Alex carried out the takeover in January, using the impending US Federal Reserve meeting as justification.

Celsius lost more than $50 million in only January.

Unnamed persons with knowledge of the matter claim that Mashinsky chose to disregard seasoned traders with decades of experience because he was worried that the Fed would increase interest rates.

According to the sources, he instructed the trading team of the crypto lender to sell hundreds of millions of dollars’ worth of Bitcoin, and the company then bought the assets back the next day at a loss. The article claims that Celsius lost $50 million in trade in only January as a result of the Fed’s anticipated rate rise, which had an impact on the cryptocurrency markets.

He gave the dealers orders to heavily trade the book based on false information. One of the sources said that “he was hauling around enormous quantities of bitcoin.”

Additionally, it was claimed that Mashinsky and Van Etten, Celsius’ previous chief investment officer, had differences that caused Van to depart the company in February. Regarding the judgments made using trading tactics, they both had disagreements.

The bankruptcy of Celsius, in the opinion of the firm’s attorneys, was mostly brought on by the drop in cryptocurrency values rather than negligence on the part of the company. Celsius went from being a $3 billion business in December 2021 to being insolvent and in debt.

Additionally, Celsius was provided the choice to minimize their losses and get out of their GBTC holdings. However, Alex reportedly rejected the sale, increasing the losses to $125 million, according to the persons acquainted with the situation.

It seems that Celsius and Alex are facing more and more accusations, making it difficult for the company to find a way back to land.

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