Alexander Mashinsky, the founder and former CEO of Celsius Network, could face decades in prison after pleading guilty to federal fraud charges. Mashinsky admitted to manipulating the price of Celsius’s crypto token and secretly selling his own tokens at inflated prices, pocketing $48 million before the company collapsed in 2022. He misled customers by suggesting regulatory consent and selling tokens while claiming he wasn’t. Mashinsky accepted responsibility for his actions from 2018 to 2022. The U.S. Attorney called his actions one of the biggest frauds in the crypto industry, with assets growing to $25 billion at its peak. Mashinsky used slogans to entice customers with promises of safe crypto deposits. He made millions selling his tokens while leaving customers in bankruptcy. Mashinsky faces up to 30 years in prison and must forfeit $48 million. The sentencing is scheduled for April 8. Employees who flagged misleading statements were ignored, according to an indictment. Mashinsky’s fraudulent actions caused the collapse of Celsius Network, a once-promising cryptocurrency lending platform.
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The founder of the unsuccessful crypto lending platform Celsius Network admits to fraud charges
