Celsius Network Founder Pleads Guilty to Bankruptcy Fraud!

Alex Mashinsky, founder and former CEO of Celsius Network, announced his intention to plead guilty to two counts of fraud during a hearing held yesterday, Tuesday, according to a Reuters report.

This development comes a year after he was charged with seven criminal counts, including fraud and market manipulation, where he initially pleaded not guilty.

The plea decision came after a federal judge denied his request to dismiss two major charges, with a trial scheduled for January 2025 approaching.

It is worth noting that Celsius was founded in 2017 and filed for bankruptcy in July 2022, the same period that witnessed a significant slowdown in the cryptocurrency market.

Mashinsky and former chief revenue officer Ronnie Cohen-Pavon were accused of manipulating the Cel cryptocurrency trading market to their advantage.

Cohen-Pavon pleaded guilty in September 2023 and has since been cooperating with authorities.

Mashinsky is estimated to have made a personal profit of $42 million from the sale of his CEL holdings.

Celsius, meanwhile, continues to distribute funds to its creditors, making its second tranche of $127 million, bringing the overall recovery rate to 60.4% of eligible claims, following an initial tranche in January 2024.