For a long time, cryptocurrencies have tried to distance themselves from more traditional forms of finance. However, time and time again, both of them tend to reconnect at some point, often leading to awkward situations where the crypto market is waiting on other institutions.
One of the most recent examples of such a phenomenon happening was with JPMorgan hiring an executive from one of the biggest Ponzi schemes in the crypto market, Celsius. The firm is still under investigation for purposefully running away with the funds that its investors had deposited.
Of course, this new hire was also coming at a slightly awkward time for JPMorgan, since they did not have many nice things to say about the market. Jamie Demon, CEO of JPMorgan, was fresh off an interview where he mentioned that all cryptocurrencies were simply decentralized Ponzi schemes.
This obviously antagonizing statement did not sit well with the crypto community, which went on to social media to go on the defensive. However, moments later, JPMorgan also announced they were not only bringing in a new exec, but the exec was also part of the crypto community.
A New Executive Director of Digital Assets
While it did come as a surprise to many that JPMorgan would be hiring someone who worked with Celsius, there seems to be no clear answer as to why they would do such a thing. There were obviously many other individuals who were better suited for the position, and it is clear that JPMorgan will not be justifying its position any time soon.
The executive in question is Aaron Iovine, who will be working as the executive director of digital assets regulatory policy. Despite the incendiary words used by the CEO, it is obvious that JPMorgan is trying to make a move into the digital finance space.
One of the Biggest Crypto Crashes
Bloomberg was the first outlet to report the move, and the news of the new exec came fresh off the heels of Celsius stopping transactions for all of its users, and filing for bankruptcy. During the bankruptcy proceedings, it became obvious that the firm owed its users over $4 billion, which it was no longer able to return.
In fact, what made this situation worse for many investors is that they will likely never see their money again, as the company has almost completely gone dark.
The Questionable Hire
Iovine was working in policy and regulatory affairs in Celsius, and would leave 8 months before the company would implode. However, given how apathetically the CEO has called cryptocurrencies a fraud, it was shocking to see the company start working with an exec that was once part of one of the biggest frauds in the crypto space.