Decisions at the peak of the bullish market caused Michael Moro from Genesis and Alex Mashinsky from Celsius Network to resign. Prioritizing decentralization challenges existing regulatory frameworks that strengthen governments, which led Bitcoin fundamentalist Jesse Powell to quit.
Different reasons led the above CEOs to quit the positions they had loved and held for many years. Alex Mashinsky from failed Celsius Network regrets collapsing its balance sheet for USD 1.2 billion.
Regarding Sam Trabucco from digital asset trading firm Alameda Research, he felt so stressed that he decided to relax and prioritize other things. Meanwhile, Jesse Powell from cryptocurrency exchange Kraken found it exhausting to run a large company he co-founded eleven years ago.
Michael Moro from Genesis Trading paid the price for exposing USD 2.4 billion of the company to failed hedge fund Three Arrows Capital (3AC). It became a victim, along with Celsius Network and Voyager Digital, of the credit contagion due to the USD 40 billion collapse of TerraUSD (UST).
Brett Harrison from FTX US never said why he quit his job after just over one year. He raised the number of employees of the nascent cryptocurrency exchange from three to 100.
The Conditions in the Crypto Market Are Changing
According to analysts, the high-profile earnings of CEOs show that the conditions in the crypto market are changing. Profits and cash flows have plummeted due to the current bearish market, a recession characterized by war, high inflation, and runaway founders.
Decisions at the peak of the bullish market caused Moro from Genesis and Mashinsky from Celsius Network to resign. The plan for the reassignment of Saylor as the CEO of MicroStrategy also occurred in that way.
Mobile software will be the main focus of the new CEO of the business intelligence firm. Some consider its move away from Bitcoin as a regret of involvement with the cryptocurrency.
Alex Malkov, the co-founder of Islamic Coin, believes movie makers like Mashinsky have resigned due to cascading bankruptcies. Although the bearish market may be the main reason, he said lawsuits and outright violations of financial laws contributed to it.
Malkov stated that the close attention of financial regulators and the legislative activity cause many senior managers reconsider their actions. He commented that the usual salary privileges for large cryptocurrency companies have decreased due to the bearish trend.
Tighter Regulations on Cryptocurrencies Force CEOs to Quit Massively
After the collapse of the Terra blockchain in May, governments have tightened regulations on cryptocurrencies. That means there is direct intervention from regulators as the industry is entering a new phase.
For centralized cryptocurrency exchanges like Kraken, prioritizing decentralization challenges existing regulatory frameworks that strengthen governments. It is important to remember that decentralization is a crucial principle of the crypto industry.
That situation may have led Jesse Powell, a Bitcoin fundamentalist who defends privacy and individual freedom, to resign. The founder of Kraken said he wanted to promote the industry and refused to block accounts linked to Russia unless the law required so.
Brett Harrison, former president of FTX US, stated that he resigned because the cryptocurrency industry was at various crossroads. However, he expressed his main concern about the arrival of more considerable market participants and the increasing market fragmentation.
By Alexander Salazar
