According to TechFlow news on December 4, Alexander Mashinsky, the founder and former CEO of the cryptocurrency lending platform Celsius Network, pleaded guilty in federal court in New York on Tuesday, admitting to charges of commodity and securities fraud, and could face decades in prison.
Mashinsky admitted to illegally manipulating the price of Celsius platform tokens from 2018 to 2022, secretly selling his held tokens at a high price for a profit of approximately $48 million. He also acknowledged falsely implying that the company had regulatory approval in 2021 and violating public commitments by privately selling tokens in 2019.
"I take full responsibility for my actions," Mashinsky stated. Celsius had positioned itself as a modern bank, claiming that users could safely deposit cryptocurrency assets and earn interest. The platform filed for bankruptcy in 2022. Sentencing is scheduled for April 8.