Crypto Kingpin's Downfall: Alex Mashinsky's Guilty Plea

Alex Mashinsky, former CEO of Celsius Network, pleaded guilty to two counts of fraud. He admitted to deceiving Celsius customers and manipulating the price of its crypto token. Mashinsky agreed not to appeal any sentence of 30 years or less, with sentencing set for April 2025.

Alex Mashinsky, the founder and former CEO of Celsius Network, admitted guilt on two counts of fraud in a Manhattan court. The allegations, among seven charges he faced, involved misleading customers and inflating the value of Celsius' proprietary crypto token, CEL.

In a 2021 interview, Mashinsky falsely claimed regulatory approval for Celsius' "Earn" program, affecting investor confidence. Additionally, he secretly sold his CEL holdings while publicly backing the company, actions he now acknowledges as wrong.

The guilty plea comes with a deal: Mashinsky won't appeal a sentence under 30 years. This sees him join a list of crypto figures charged following the 2022 market downturn, which similarly brought the downfall of prominent names like Sam Bankman-Fried of FTX.

(With inputs from agencies.)