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

Meta Platforms' Shares Surge Following AI Assistant Launch

chest

Meta Platforms' shares rose over 6% after the launch of its AI assistant, Muse, which helps users manage tasks and goals.

user avatarTomas Novak

Galaxy Announces $5 Million Funding for Bitcoin Quantum Security Research

chest

Galaxy announced up to $5 million in funding for Bitcoin quantum-security work, including developer grants, research, and an advisory council.

user avatarMaya Lundqvist

IonQ Launches Superion 256 Quantum Computer with Orders Open for 2027 Delivery

chest

IonQ has launched its Superion 256 quantum computer, opening orders for delivery in 2027.

user avatarKaterina Papadopoulou

Prediction Markets Show Shifts in Oil Price Expectations

chest

Prediction markets are reacting to oil price fluctuations, with traders speculating on whether crude will reach $120 or fall to $55 first.

user avatarAisha Farooq

Record Diesel Prices Hit Ahead of Midterm Elections

chest

Record diesel prices reached a high of 594 a gallon, raising concerns about consumer affordability ahead of the midterm elections.

user avatarLi Weicheng

Brent Crude Surpasses $100 Amid Geopolitical Tensions

chest

Brent crude oil prices rose above $100 for the first time in six weeks due to geopolitical tensions, including attacks on Saudi oil facilities and US military responses.

user avatarLeo van der Veen

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.