Former Celsius CEO Alex Mashinsky has reached a plea deal with United States prosecutors after his lawyers lost a bid to have charges in his criminal indictment dismissed.
In a Dec. 3 conference in the United States District Court for the Southern District of New York, Mashinsky said he would plead guilty to commodities fraud and a fraudulent scheme to manipulate the price of the CEL token. The former Celsius CEO admitted to making false statements about the platform’s Earn Program that encouraged investors to sell their Bitcoin (BTC).
The plea agreement allowed Mashinsky to plead guilty to only two charges out of the initial seven filed by prosecutors in July 2023. According to Judge John Koeltl, the former Celsius CEO could face up to 10 years in prison for the commodities fraud charge.
Mashinsky initially pleaded not guilty to all the charges and been free — with some travel restrictions — on a $40-million bond. His trial had been scheduled to begin in January 2025.
This is a developing story, and further information will be added as it becomes available.
