Goldman Sachs banker gives up after making millions in cryptocurrency

A collection of Bitcoin, Litecoin, and Ethereum tokens.

Chris Ratcliffe | Bloomberg | Getty Images

LONDON – A Goldman Sachs executive has resigned after making a fortune on a cryptocurrency investment, according to industry sources.

Aziz McMahon, Goldman’s chief executive officer and head of sales for emerging markets in London, gave up after making millions of pounds on a wager on the digital currency ether, three former investment bank employees told CNBC.

The former employees, who all know McMahon personally, preferred to remain anonymous because of the sensitivity of the discussions. McMahon is believed to have redeemed cryptocurrency worth at least 10 million pounds ($ 14 million).

Previous reports from eFinancial Careers and The Guardian said McMahon left Goldman after making money from Dogecoin.

It is possible that McMahon had some stakes in Dogecoin as well. According to eFinancialCareers, he is now said to have set up his own hedge fund.

When approached by CNBC, Goldman Sachs confirmed McMahon’s departure but declined to comment. McMahon wasn’t immediately available for comment when CNBC contacted him via LinkedIn.

Ether, the digital asset McMahon is said to have invested in, has grown more than 400% since early 2021. Ether was developed about six years after Bitcoin and is based on another technology known as Ethereum. Ether and Ethereum are often used interchangeably to describe the currency.

Bitcoin and other cryptocurrencies have fluctuated a lot lately. On Wednesday, the entire market lost as much as $ 365.85 billion after a tweet from Elon Musk that said his electric car company Tesla would no longer accept bitcoin payments due to environmental concerns about the cryptocurrency.

Musk’s preferred crypto is Dogecoin, a token that started out as a joke in 2013. Inspired by the meme “Doge”, which contains a Shiba-Inu dog and cartoon-style text, Dogecoin was thought of by its creators as a “fun” alternative to Bitcoin.

It has since gained a growing online community and is now the fourth largest digital asset by market value on CoinMarketCap. While proponents like to refer to it as “folk crypto,” investors warn that Dogecoin is a sign of foaming in the crypto market.

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