Alex Mashinsky, the founder of Celsius, has officially admitted to charges of fraud and market manipulation.
The Details of Deception
During a hearing before U.S. District Judge John Koeltl, Mashinsky admitted his role in deceiving users of the Celsius network. He pleaded guilty to fraudulent schemes and intent to manipulate the market price of the CEL token.
Celsius’s Operational Shifts
After declaring bankruptcy, Celsius reported paying up to $2.5 billion to its creditors in both cash and cryptocurrencies. In restructuring, Celsius shifted focus to Bitcoin mining.
Reaction to Guilty Plea
Following Mashinsky's guilty plea, the market reaction was surprising: the CEL token initially surged by 12% before stabilizing around $0.26.
Alex Mashinsky's admission underscores the crucial need for transparency and regulatory compliance in the digital finance industry.
