Yet another crypto giant has fallen unceremoniously – this time it’s Alex Mashinsky, founder and CEO of Celsius who has “pled guilty to one count of commodities fraud and one count of securities fraud, which combined carry a maximum sentence of 30 years in prison.”
According to a DOJ Southern District of New York press release out Monday, Mashinsky misled Celsius customers about the company’s profitability and the security of their investments, while secretly manipulating the price of the company’s proprietary token, CEL, for personal gain.
As part of his guilty plea, Mashinsky agreed to forfeit over $48 million in proceeds from the schemes.
Celsius, once marketed as a safe alternative to banks with catchy slogans like “Unbank Yourself,” promised high returns on crypto deposits through programs like “Earn” and “Custody.”
However, Mashinsky and his team engaged in deceptive practices, including misrepresenting the company’s financial health and using customer funds to inflate CEL’s price. These actions created the illusion of profitability and stability while leaving ordinary investors vulnerable to significant losses. […]
— Read More: www.zerohedge.com
