According to Deep Tide TechFlow, on December 4, former CEO and founder of the crypto lending platform Celsius Network, Alexander Mashinsky, 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 between 2018 and 2022, profiting approximately $48 million by secretly selling his holdings at a high price. He also acknowledged falsely implying that the company had obtained regulatory approval in 2021 and violating public commitments by privately selling tokens in 2019.
"I take full responsibility for my actions," Mashinsky said. Celsius had marketed itself as a modern bank, claiming users could safely deposit crypto assets and earn interest. The platform filed for bankruptcy in 2022. Sentencing is set for April 8.