Key Takeaways:
- Former Celsius CEO Alex Mashinsky pleaded guilty to commodities fraud and manipulating the CEL token price, earning $42M in profits.
- The plea deal reduces his liability to two charges, with sentencing set for April 8, 2024, potentially facing up to 30 years in prison.
- Mashinsky admitted to misleading users about regulatory approval and his CEL token sales during Celsius’ collapse.
Alex Mashinsky, former CEO of Celsius Network, pleaded guilty to commodities fraud and price manipulation of the CEL token as part of a plea deal with U.S. prosecutors.
During a December 3 hearing in the U.S. District Court for the Southern District of New York, Mashinsky admitted to misleading investors, claiming Celsius had regulatory approval and falsely stating he had not sold his CEL tokens, while personally profiting $42 million.
Judge: Tell me what you did.
— Inner City Press (@innercitypress) December 3, 2024
Mashinsky: I said that Celsius had approval from regulators. It was false. I falsely said I was not selling my CEL tokens. I accept full responsibility for my actions.
Judge: Were you working in Manhattan?
Mashinsky: Yes, your Honor
Mashinsky acknowledged his actions, saying: “I accept full responsibility for my actions.”
The plea agreement reduced his charges from seven to two, with a maximum sentence of 30 years if penalties are served consecutively.
Initially, Mashinsky had pleaded not guilty and was released on a $40-million bond with travel restrictions.
A trial was previously scheduled for January 2025, but the plea deal marks a major shift in the case.
Judge John Koeltl earlier rejected Mashinsky’s motion to dismiss the charges, labeling his legal team’s arguments as “without merit.”
The case highlights broader challenges for Celsius Network, including legal disputes and the planned distribution of $127 million from a litigation recovery fund.
Mashinsky’s guilty plea represents a significant step in efforts to ensure accountability within the cryptocurrency sector.
About The Author
Efe Bravo, a seasoned journalist, delivers compelling insights into the cryptocurrency and blockchain industry.
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