The Daily Hodl
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX
No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX
No Result
View All Result
The Daily Hodl
No Result
View All Result

Bankrupt Celsius Lost Users’ Funds Trading Bitcoin (BTC) at CEO Alex Mashinsky’s Request: Report

by Daily Hodl Staff
August 16, 2022
in Scams, Schemes and Hacks

Crypto lending platform Celsius reportedly attempted to trade its users’ Bitcoin (BTC) shortly before the company filed for bankruptcy.

The Financial Times (FT) reports that Celsius misplaced user funds for BTC trading under the direction of CEO Alex Mashinsky.

As per the report, Mashinsky gathered his investment team in January to announce he would be taking control of the firm’s trading strategy just before a Federal Reserve meeting that he believed would move the markets.

FT’s sources said that Mashinsky was convinced that a hawkish outcome to the Fed meeting would cause crypto markets to drop, and wanted the firm to sell off large amounts of BTC.

One of the people said,

“‘He was ordering the traders to massively trade the book off of bad information… He was slugging around huge chunks of Bitcoin.’ 

The Fed meeting did not have Mashinsky’s expected effect on BTC’s price and Celsius reportedly had to buy back at a loss before reporting a $50 million loss in January.

Line chart of $ per coin showing Bitcoin prices ticked up after January Federal Reserve meeting
Source: The Financial Times

FT’s report also details another losing trade whereby Celsius bought into the Grayscale Bitcoin Trust (GBTC), a popular investment product that follows the price of BTC and trades at a premium or a discount depending on the direction of the markets.

According to FT, Celsius bought GBTC when it was trading at a premium, and then suffered big losses when BTC went down and GBTC began trading at a 15% discount.

Celsius was reportedly offered a deal to get out of the losing trade, but Mashinsky refused, speculating that the discount would eventually shrink. The firm finally exited the trade when GBTC was trading at a 25% discount.

The company’s total losses on the GBTC trade alone were between $100 million and $125 million, according to sources familiar with the matter.

The Financial Times story comes on the heels of reports of Mashinsky being under investigation by a committee of unsecured creditors claiming Celsius customers were repeatedly misled by the CEO about the safety of their funds and the firm’s business model.

Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox

Check Price Action

Follow us on Twitter, Facebook and Telegram

Surf The Daily Hodl Mix

Check Latest News Headlines


 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/Professional Bat

Submit a Press Release

Industry Announcements

  • Bitcoin.com’s VERSE Token Now Available for Trading on Kucoin
    May 29, 2023
  • Huobi Set To Launch Trading Service in Hong Kong
    May 26, 2023
  • Stably Launches #USD As the First BRC20 Stablecoin on the Bitcoin Network
    May 25, 2023
  • The Open Network (TON) Unveils DeFi and Data Analytics Hackathon in Collaboration With DWF Labs and Amazon Web Services
    May 25, 2023
  • Ankr Partners With Mirage To Revolutionize the Web 3.0 Gaming Landscape
    May 25, 2023
  • Tulipart.com Launches a Collection of Tulip NFTs Minted Daily Over Seven Years
    May 24, 2023
  • Binance Futures Grand Tournament Returns
    May 24, 2023
Submit a Guest Post
ADVERTISEMENT
Bitcoin
$27,943.49
$27,943.49
0.14%
Ethereum
$1,912.21
$1,912.21
0.66%
Cardano
$0.381255
$0.381255
0.41%
XRP
$0.500718
$0.500718
4.03%
Dogecoin
$0.072971
$0.072971
0.48%

Spotlight

  • Bitcoin (BTC) and Ethereum (ETH) Fees Plummet As Speculative Frenzy Cools, According to Crypto Analytics Firm
    May 27, 2023
  • China To Settle $582,300,000,000 in Yuan Worldwide Amid Push to Circumvent US Dollar: Report
    May 27, 2023
  • Top Crypto Analyst Says One Catalyst Will Keep Litecoin ‘Propped Up’, Updates Outlook on Bitcoin and Ethereum
    May 27, 2023
  • $30,000,000,000 Exits US Banking System in One Week As Deposit Flight Grows
    May 27, 2023
Coinfest Asia Banner
DON'T MISS A BEAT
Crypto headlines delivered daily
to your inbox
BTC, ETH, XRP news alert options
By joining The Daily Hodl news list you agree to our
Terms and Conditions and Privacy Policy.
Featured Image: Shutterstock/Billion Photos

Cryptocurrency news and analysis, covering Bitcoin, Ethereum, Ripple, XRP, altcoins and blockchain technology

Categories

Bitcoin • Ethereum • Trading •
Ripple and XRP • Altcoins •
Blockchain • Regulators •
Scams • Crypto101 • HodlX •
Futuremash •
Industry Announcements

ABOUT US | EDITORIAL POLICY | PRIVACY POLICY
TERMS AND CONDITIONS | CONTACT | ADVERTISE

JOIN US ON TELEGRAM

JOIN US ON TWITTER

JOIN US ON FACEBOOK

COPYRIGHT © 2017-2023 THE DAILY HODL

No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX

© 2023 The Daily Hodl