Cryptocurrency's Former CEO Faces Legal Trouble Over Alleged Drug Use and Misconduct

The legal woes surrounding Gillespie have arisen as part of a lawsuit filed in New Jersey by Bradley Nagel, the head of the global options trading division of the firm. Gillespie stands accused of excessive drug use and the illicit distribution of banned substances, including cocaine, among attendees of a Bitcoin conference last year. These allegations came to light thanks to Nagel, who claimed that he was sidelined from his position as a retaliatory measure for expressing concerns about Gillespie's actions.

Former CEO Phil Gillespie said the allegations are “pure hearsay” and he never met with the ex-employee, who wasn’t present at the conference. 2/ pic.twitter.com/5r1M4xxBBq

— Yueqi Yang (@Yueqi_Yang) September 20, 2023

Gillespie, who vacated his position as the CEO of B2C2 in November of the previous year, vehemently denies these accusations, labeling them as "unfounded." He further emphasizes that Nagel was not present at the aforementioned conference.
This lawsuit serves as a telling glimpse into the internal conflicts plaguing the cryptocurrency industry, which is currently navigating a period of market volatility and corporate missteps. Moreover, it adds another layer of scrutiny to the often wild and raucous social scene that has come to define major crypto events.

The Bitcoin 2022 conference in Miami last year drew an international audience of over 25,000 individuals, including prominent figures like Michael Novogratz and Peter Thiel. The multitude of parties even led to attendees being handed Excel spreadsheets to help them keep track of the festivities.

The legal case took a particularly troubling turn when it was revealed that Nagel's concerns escalated after an email surfaced from the intern's father. In the email, the legitimacy of his 19-year-old daughter's invitation to travel from Thailand to Miami was called into question, expressing fears that it might be linked to unlawful activities.

A Look into B2C2's Operations

Founded in 2015, B2C2 operates out of London and is owned by the Japanese conglomerate SBI Holdings Inc. The firm specializes in executing cryptocurrency trades for institutional clients and brokerage companies, including Robinhood Markets Inc.

Before joining B2C2 in 2018, Gillespie had experience on Wall Street, managing the systematic foreign exchange market at Goldman Sachs Group Inc. in London. He was hired by B2C2's founder, Max Boonen, who is also a Goldman Sachs alumnus.

Read more: Crypto Fraudster's Guilty Plea