Ex-Celsius (CEL) executive Aaron Iovine has recently secured a position at U.S. investment bank JPMorgan Chase & Co as the organization’s executive director of digital assets regulatory policy. He is informally recognized within the bank and the broader industry as their first ‘Head of Crypto’.
Leaving Celsius Behind
Iovine previously held the role of chief of policy and regulatory relations at Celsius, serving for eight months before leaving in September. A representative from JPMorgan confirmed his hire but declined to provide further details. Given the volatile market conditions in recent months, including the fall in cryptocurrency prices and the insolvency of multiple firms, JPMorgan, the largest investment bank globally, is looking to expand its regulatory focus on digital assets. The role Iovine will play with JPMorgan and CEO Jamie Dimon, who once referred to cryptocurrencies as “decentralized Ponzi schemes,” remains uncertain.
Is JPMorgan’s CEO Changing His Position on Crypto?
Dimon’s stance has often been one of crypto skepticism, where he has gone to great lengths to disparage the cryptocurrency industry. However, does the recent hiring of Iovine signal a shift at the corporate level? While Dimon acknowledges the value of blockchain, decentralized finance (DeFi), and regulated stablecoins, he has previously stated his skepticism regarding cryptocurrencies like Bitcoin. In 2017, he called Bitcoin a “fraud” and vowed to fire any employees who traded it.
Interestingly, after his harsh comments, JPMorgan Securities went on to buy Bitcoin, becoming one of the biggest buyers of Bitcoin in the wake of his remarks. Furthermore, JPMorgan introduced its own “JPM Coin” to facilitate cross-border payments and has maintained a positive outlook on blockchain technology despite Dimon’s earlier comments on crypto.
The Collapse of Celsius: A Controversial Saga
The collapse of Celsius left its customers with billions of dollars in losses, and its Chapter 11 bankruptcy process has been filled with controversy, including allegations of financial mismanagement by former CEO Alex Mashinsky. The company has already spent over $3 million on legal fees as part of the bankruptcy process. According to recent court records, Celsius paid $2.6 million to Kirkland and Ellis and an additional $750,000 to Akin Gump for their services during the two-week period from July 13 to July 31.
Ongoing Legal Troubles for Celsius
Celsius is continuing its Chapter 11 bankruptcy proceedings under the U.S. Bankruptcy Code. In a recent development, it was revealed that court records associated with the lawsuit had been made public, exposing the personal information of thousands of Celsius clients. These records, available to anyone familiar with the legal brief, included over 14,500 pages detailing the financial activities of the company’s co-founders and the identities and wallet addresses of investors.
Withdrawals were first halted by Celsius in June last year due to significant cash outflows amid the turbulent market conditions. While Iovine was not involved in the controversy surrounding Celsius, as he was employed by the company only from February to September this year, his involvement in JPMorgan’s new crypto strategy remains noteworthy.
