✍️ 28 December, 2023 – 13:42 👤 Editor: Jakub Motyka
- According to a report in the Financial Times, Celsius’s CEO directed the company’s trading strategies in January.
- The report states that he made decisions based on his assumptions prior to the Fed meeting.
- Apparently he ran the trades himself, and paid no heed to expert opinion.
According to a report by the Financial Times, Celsius Network CEO Alex Mashinsky would have been responsible for the trading strategies of the company that caused its bankruptcy. Let us remember that after that, the cryptocurrency lending company was forced to declare bankruptcy due to a liquidity crisis.
Reports indicate that Mashinsky made important decisions before a meeting of the Federal Reserve (FED). In this, a reduction plan would be established to combat inflation, which is why the CEO expected a more aggressive result within the cryptocurrency market.
How Did Celsius Network Go Bankrupt Under Its CEO?
According to the testimony of several people, Mashinsky directed the individual operations and canceled executives with decades of financial experience, days before the Fed meeting. He ordered the sale of Bitcoin (BTC) worth hundreds of millions of dollars, only to buy back the holdings at a loss a day later. As a result of Mashinsky’s poor risk management, Celsius Network fell into a deep liquidity crisis from which it is still unable to recover.
Celsius filed for Chapter 11 bankruptcy on July 14. According to court documents, the liquidity of its platform can only support it until October 2022. As of this date, operating costs and capital expenditures will represent a monthly debt of USD 34 million. The company is doing everything possible to regain its stability and the trust of users. However, as new reports and news come out, your goal becomes more difficult.
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