Alex Mashinsky, founder and former CEO of Celsius Network, pleaded guilty to fraud charges tied to the company's collapse in 2022.
The Scheme Behind Celsius' Collapse
Celsius, founded in 2017, attracted many customers through high-interest crypto deposit programs. However, it has been uncovered that the company's rapid growth was built on price manipulation of the Celsius token (CEL) by Mashinsky.
Details of the Fraudulent Activities
Besides manipulating the CEL price, Mashinsky misled investors by making false statements about the company's financial health, falsely claiming regulatory approval.
Legal Aftermath for Mashinsky
Following his guilty plea, Mashinsky expressed regret and acknowledged responsibility. He faces up to 30 years in prison and civil lawsuits from the SEC and CFTC.
Mashinsky's guilty plea marks a significant step in the legal proceedings related to his activities with Celsius. He is set to face further legal ramifications.
