Crypto Scandal: Alex Mashinsky's Guilty Plea in Celsius Fraud Case

Alex Mashinsky, ex-CEO of Celsius Network, pleaded guilty to fraud charges for misleading customers and manipulating company token value. He admitted to making false claims about regulatory approvals and selling his token holdings. Facing up to 30 years in prison, he was part of a broader crypto industry downturn.

In a significant development in the cryptocurrency world, Alex Mashinsky, the founder and former CEO of Celsius Network, has pleaded guilty to two criminal counts. On Tuesday, Mashinsky admitted to commodities fraud and a fraudulent scheme to manipulate the price of CEL, Celsius' proprietary token, before U.S. District Judge John Koeltl.

Mashinsky, 59, had been indicted on July 13, 2023, on seven counts, including fraud and market manipulation. Federal prosecutors accused him of misleading Celsius customers to invest, falsely claiming regulatory approvals, and inflating his company's token value. Despite initially pleading not guilty, Mashinsky has now accepted responsibility.

The case against Mashinsky emerges amid a wider disruption in the crypto sector following a price slump in 2022. Celsius filed for bankruptcy the same year, and other major players like FTX faced similar fates. The co-founder, Sam Bankman-Fried, was convicted of fraud and sentenced to 25 years, highlighting the volatility and legal scrutiny in the industry.

(With inputs from agencies.)