Mashinsky Admits to Fraud in Celsius Network Case

user avatar

by Giorgi Kostiuk

2 years ago

Alex Mashinsky, founder of Celsius Network, has pled guilty to two counts of fraud. The admission follows charges related to token price manipulation.

Charges Against Mashinsky

Initially indicted on July 13, 2023, on seven counts of fraud, conspiracy, and market manipulation, Mashinsky admitted to commodities fraud and manipulating Celsius’ proprietary token, CEL.

Court Testimony

In court, Mashinsky confessed to misleading Celsius customers in a 2021 interview, falsely claiming regulatory approval for their "Earn" program, which offered investment returns by deploying customers’ cryptocurrency assets. He also admitted to selling his CEL holdings without informing customers.

I know what I did was wrong, and I want to try to do whatever I can to make it right.

Implications for Celsius and the Crypto Market

Mashinsky faces a maximum sentence of 30 years. He agreed not to appeal any sentence within this range. Sentencing is scheduled for April 8, 2025. Prosecutors revealed that Mashinsky sold CEL at inflated prices, personally gaining $42 million while leaving customers at a loss when Celsius went bankrupt.

Mashinsky made tens of millions of dollars selling his own CEL at artificially high prices, while his customers were left holding the bag when the company went bankrupt.Damian Williams, the U.S. Attorney for Manhattan

Alex Mashinsky's guilty plea in fraud charges has had serious repercussions for Celsius and its customers amidst the prolonged fallout of the 2022 crypto market downturn.

Tier I

Sector: #18291

Sealed Cache Room

Resource Cache

Resource Cache

Tier I

Requires 25% Tier Progress to Claim
Meme Cache

Meme Cache

Tier I

Requires 50% Tier Progress to Claim
Equipment Cache

Equipment Cache

Tier I

Requires 75% Tier Progress to Claim

After collecting, caches will be stored in your inventory and can be opened with Keys.

Other news

NEAR Protocol Achieves 50 Million Operations Milestone

chest

NEAR Protocol's chain abstraction infrastructure has surpassed 50 million lifetime operations, marking a significant achievement in simplifying multichain crypto interactions.

user avatarArif Mukhtar

Solana Sees Significant RWA Inflows

chest

Solana has recorded $348 million in net inflows of real-world assets over the past 30 days, increasing its tokenized RWA value to $720 million.

user avatarMaria Gutierrez

Aave Governance Considers Emergency Powers to Protect Users

chest

Aave governance is considering a proposal to grant emergency powers to guardians to freeze vulnerable lending pools during security threats.

user avatarDavid Robinson

Router Protocol Users Must Move Assets During Grace Period

chest

Router Protocol users must take action during the grace period to bridge assets back to origin chains before relayer nodes are disconnected.

user avatarJacob Williams

Arbitrum Proposes Disqualification of Three DeFi Protocols from Future Grants

chest

A new governance proposal by Arbitrum aims to disqualify three DeFi protocols from future DAO grant allocations due to alleged reporting failures and misuse of prior incentives.

user avatarAndrew Smith

Router Protocol to Shut Down Crosschain Network and Burn 303 Million Tokens

chest

Router Protocol has announced a deprecation plan to shut down its crosschain messaging network and burn 303 million ROUTE tokens due to unsustainable maintenance costs.

user avatarZainab Kamara

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.