Celsius Founder Alexander Mashinsky Pleads Guilty to $4.7 Billion Fraud Charges
Alexander Mashinsky, known for his role at the now-defunct cryptocurrency lender Celsius, recently admitted to two counts of fraud, paving the way for a potential 30-year prison sentence. This development follows charges by the US Department of Justice accusing him of several offenses like fraud, conspiracy, and market manipulation.
In a New York courtroom, Mashinsky confessed to committing commodities fraud and securities fraud related to Celsius, a company he helped establish as a crypto industry “bank.” The first deceptive scheme involved misleading customers about crucial aspects of the company’s operations, such as its profitability and the nature of investments made with customer funds.
Additionally, the US Attorney’s Office for the Southern District of New York alleged that Mashinsky engaged in illegal price manipulation of Celsius’ token, CEL, while secretly selling his own holdings at inflated prices.
As part of his plea agreement, Mashinsky agreed to forfeit over $48 million gained from these illicit activities. US Attorney Damian Williams characterized Mashinsky’s actions as orchestrating “one of the largest frauds in the crypto industry.”
