Alex Mashinsky, the founder of bankrupt cryptocurrency lender Celsius Network, has agreed to plead guilty to two counts of fraud. The 59-year-old former CEO was initially charged with seven counts of fraud, conspiracy, and market manipulation charges in July last year.
Mashinsky misled customers into investing in Celsius, artificially inflating the value of its proprietary crypto token, Cel. This manipulation led to a series of bankruptcies in the cryptocurrency sector in 2022.
Celsius filed for bankruptcy protection after customers rushed to withdraw deposits as crypto prices fell. The company’s former chief revenue officer, Roni Cohen-Pavon, had previously pleaded guilty and agreed to cooperate with prosecutors.
Mashinsky is also accused of personally reaping approximately $42m from selling his holdings of the Cel token. His plea deal marks a significant development in the ongoing investigation into the collapse of Celsius Network.
The case highlights the risks associated with crypto lending companies that promise easy loan access and high interest rates to depositors, only to manipulate the market for their own gain.
Source: https://www.theguardian.com/technology/2024/dec/03/alex-mashinsky-crypto-fraud-celsius