Connect with us

Crypto

Celsius Ceo Alex Mashinsky Placed Bad Bitcoin Bets Buy Loss Control Trading Scheme – ABP Live

Published

on

By: Shayak Majumder | Updated at : 17 Aug 2022 02:09 PM (IST)

Celsius CEO Alex Mashinsky was reportedly “slugging around huge chunks of Bitcoin” that majorly backfired. ( Image Source : Getty )
Celsius, the US-headquartered crypto lending platform, filed for bankruptcy in July to “provide the company with the best opportunity to stabilise the business”. Now, a report by Financial Times, citing sources familiar with the matter, said that the embattled company’s CEO Alex Mashinsky took charge of Celsius’ trading strategy and placed some bad bets with considerably large sums of Bitcoin (BTC) that backfired. Mashinsky reportedly “took control” just months before Celsius filed for bankruptcy protection. Furthermore, Celsius also got signoff from a US bankruptcy judge to mine and sell Bitcoins, but not stocks or debt.
“He was ordering the traders to massively trade the book off of bad information,” the Financial Times report quoted a source. “He was slugging around huge chunks of Bitcoin.” Interestingly, the report also did quote another individual who said that Mashinsky wasn’t actually running the trading desk. However, other sources quoted in the report asserted that Mashinsky “clashed” with the company’s CIO repeatedly. “He had a high conviction of how bad the market could move south. He wanted us to start cutting risk however Celsius could,” a source was quoted as saying.
ALSO READ: Celsius Files For Bankruptcy Days After Pausing Crypto Withdrawals: What Will Happen To Existing Loans?
A separate report by Reuters noted that Chief U.S. Bankruptcy Judge Martin Glenn provided a signoff to Celsius to mine and sell BTCs during bankruptcy. He reportedly noted that Bitcoin mining won’t immediately be profitable since Celsius needs to make additional investments to get its mining facilities running at full capacity, but said he would allow it to proceed nevertheless.

googletag.cmd.push(function() { googletag.display(“div-gpt-ad-6601185-5”); });

However, the judge also added that he has blocked Celsius from selling equity or debt investments in other crypto firms until it provides more information about the assets it wishes to sell, as per Reuters. 
Celsius announced on July 14 that the company has initiated a “restructuring process” to stabilise its business and “consummate a comprehensive restructuring transaction that maximises value for all stakeholders.” It has filed for voluntary petitions for reorganisation under Chapter 11 of the US Bankruptcy Code. As per a report by Reuters, Celsius listed estimated assets and liabilities on a consolidated basis in the range of $1 billion to $10 billion.
Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Cryptocurrency is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Cryptocurrency market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.
Cryptocurrency News Live: Bitcoin Dips Below $23,000
Crypto Exchanges In Canada Impose CAD 30,000 Annual ‘Buy Limit’ On Some Coins
Cryptocurrency Price Today: Bitcoin Dips Below $23,000, Ethereum Holds Steady
Cryptocurrency News Live: Bitcoin Dips Below $24,000
Crypto.com Lays Off More Employees In ‘Worse’ Second Job Cut Round Amid Crypto Meltdown
CBI-ED Will Arrest Me Within 3-4 Days, Says Manish Sisodia. Claims 2024 LS Polls Will Be Modi Vs Kejriwal
‘M O N E Y SHH’: Anurag Thakur Takes Dig At Manish Sisodia After CBI Crackdown In Delhi Liquor Scam
‘No New Cars, Exchange Books & Pens Instead Of Flowers’: Tejashwi’s 6 Do’s For RJD Legislators
Munawar Faruqui’s Show Cancelled In Bengaluru For 2nd Time, BJYM Workers Create Ruckus In Hyderabad
CJI Slams Centre Over Delaying Funds To Andhra Pradesh, Says State Suffered Due To Bifurcation

source

Crypto

DOJ charges Russian nationals with laundering bitcoin in 2011 Mt. Gox hack – Engadget

Published

on

source

Continue Reading

Crypto

Articles by Win Ko Ko Aung – Bitcoin Magazine

Published

on

source

Continue Reading

Crypto

Sora Ventures leads $1.5M funding round for Bitcoin Startup Lab – CryptoSlate

Published

on

source

Continue Reading

Trending

Copyright © Diaily Meta News