Alex Mashinsky, former CEO of Celsius and founder of the crypto lender, could face up to 30 year’s jail after pleading to criminal charges related to the failure of the bankrupt cryptocurrency lender.
Mashinsky pleaded guilty on Tuesday to a single count of commodities fraud, according to the U.S. Attorney’s Office for the Southern District of New York. He had misled customers regarding Celsius’s profitability and nature of investments made by the company.
Mashinsky pleaded also guilty to a single count of securities fraud. This involved manipulating the CEL token’s price illegally and artificially. This scheme allowed the 59 year old to make a significant profit by selling his holdings.
U.S. attorney for the Southern District of New York Damian Williams claims that Mashinsky was behind one of the largest frauds committed in the crypto-industry.
He lied to ordinary crypto investors by falsely promising that the investments they made were safe. Mashinsky used catchy slogans such as ‘Unbank Yourself’ to promise that Celsius’s crypto would be as secure as money held in a traditional bank. However, unlike banks, Celsius gave back most of its profits. The truth is that Celsius has never been profitable .”
As part of his plea agreement, Mashinsky forfeits over 48 million dollars in profits from his schemes. Reuters reported that he agreed to not appeal any sentences of less than 30 years.
The sentence is scheduled for 8 April.
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As new information becomes available, this post Alex Mashinsky faces 30 years in prison for his role in the collapse of Celsius could be updated.
