Celsius CEO’s alleged trading decisions led to bankruptcy #togrp7

Following the U.S. Federal Reserve’s January 2022 meeting, Celsius CEO Alex Mashinsky allegedly stepped in to lead the firm’s trading strategy. In anticipation of a hawkish outcome and his conviction that crypto prices would crash, he ordered the trading team to sell hundreds of millions of dollars worth of Bitcoin.

The outcome of Mashinsky’s decision was that Celsius had to buy back the bitcoin a day later — recording $50 million in a loss. His trading decisions were allegedly based on his knowledge and intuition, with no outside expert guidance. Complications from Mashinsky’s trading decisions, mismanagement of $2 billion, and weak systems for tracking assets resulted in Celsius filing for bankruptcy in July. At the time, Mashinsky claimed that Celsius’ assets had grown faster than its ability to invest, making “certain poor asset deployment decisions.”#togrp7

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