Alex Mashinsky Pleads Guilty to Fraud: Founder and Former CEO of Celsius
Alex Mashinsky, the founder and former CEO of Celsius Network, has pleaded guilty to two counts of fraud in court. This news comes after Mashinsky was arrested last July in New York and charged with seven criminal counts related to the operation and subsequent collapse of Celsius Network.
Reports indicate that Mashinsky has accepted a maximum sentencing guideline of 30 years in prison. He admitted to lying to investors about the platform’s practices, including uncollateralized loans. In court, Mashinsky acknowledged that he misled investors by falsely claiming approval from regulators and not disclosing the sale of his CEL tokens.
Initially pleading not guilty, Mashinsky attempted to have certain charges dismissed. However, the judge ruled against him, and he ultimately pleaded guilty to commodities and securities fraud. The collapse of Celsius Network in 2022 was followed by a Chapter 11 bankruptcy filing, shedding light on the company’s financial troubles.
Despite Mashinsky assuring customers that Celsius did not engage in non-collateralized loans, it was revealed that the company was, in fact, making such loans. When Celsius filed for bankruptcy, it was disclosed that there was a significant shortfall in its balance sheet of $1.2 billion.
Mashinsky is scheduled to be sentenced in Manhattan in April 2025. Stay tuned for more updates as this story continues to unfold.
