Celsius founder and former CEO Alex Mashinsky has found himself in hot water, facing up to 30 years of jail time after pleading guilty to charges related to the collapse of the bankrupt crypto lender. The U.S. Attorney’s Office, Southern District of New York, revealed that Mashinsky admitted to committing commodities fraud by misleading customers about Celsius’ profitability and the nature of the investments the company made.
Additionally, Mashinsky pleaded guilty to securities fraud for manipulating and artificially inflating the price of Celsius’ CEL token. This deceptive scheme allowed him to sell his own holdings at a significant profit, raking in millions in gains. U.S. Attorney Damian Williams called Mashinsky’s actions one of the largest frauds in the crypto industry, highlighting how he deceived retail investors with false promises of low-risk investments and high returns. Despite Mashinsky’s claims that Celsius was profitable, it was all smoke and mirrors.
As part of his plea deal, Mashinsky will forfeit over $48 million in proceeds from his fraudulent activities and has agreed not to appeal any sentence of 30 years or less. The sentencing is scheduled for April 8th, where Mashinsky will face the consequences of his actions.
In the wake of this scandal, it serves as a reminder to always exercise caution and due diligence when investing in the volatile world of cryptocurrency. Stay informed, stay vigilant, and be wary of promises that sound too good to be true. The repercussions of deceitful practices can have severe consequences, not just for the perpetrators but for innocent investors who fall victim to their schemes.
Stay tuned for updates on this developing story as the crypto community grapples with the fallout of Mashinsky’s downfall. Subscribe to get email alerts delivered directly to your inbox, follow us on social media for the latest updates, and keep a close eye on price action to navigate the ever-changing landscape of the crypto market.