Tue Dec 03 23:10:05 UTC 2024: ## Celsius Founder Mashinsky Pleads Guilty to Fraud
**New York, NY** – Alex Mashinsky, the founder and former CEO of bankrupt cryptocurrency lender Celsius Network, pleaded guilty on Tuesday to two counts of fraud. Mashinsky, 59, had initially been indicted on seven counts, including fraud, conspiracy, and market manipulation. His plea agreement covers charges of commodities fraud and a scheme to manipulate the price of Celsius’s in-house token, CEL.
The guilty plea comes after Mashinsky admitted to misleading Celsius customers, including falsely claiming regulatory approval for the company’s high-yield “Earn” program and failing to disclose his own sales of CEL tokens. He faces a maximum sentence of 30 years in prison, agreeing as part of the plea deal not to appeal a sentence of 30 years or less.
Mashinsky is one of several prominent cryptocurrency executives to face criminal charges following the 2022 crypto market crash that saw the collapse of several firms, including FTX. Celsius, which filed for bankruptcy in July 2022, has since exited bankruptcy and is now focused on Bitcoin mining.
The case highlights the risks associated with the rapid growth of crypto lending platforms that offered high interest rates during the pandemic. Prosecutors allege Mashinsky personally profited approximately $42 million from selling CEL tokens. His former chief revenue officer, Roni Cohen-Pavon, also pleaded guilty earlier this year and is cooperating with the investigation. The guilty plea follows the conviction and sentencing of Sam Bankman-Fried, the founder of FTX, to 25 years in prison for fraud. The ongoing legal actions underscore the scrutiny facing the cryptocurrency industry following its recent turmoil.
First Piper 