2024-12-04
Alex Mashinsky, the founder and former
CEO of Celsius Network, has pleaded guilty to two counts of fraud.
This comes after his initial indictment
on seven charges, including fraud, conspiracy, and market manipulation, in July
2023.
Mashinsky's guilty plea includes
commodities fraud and a scheme to manipulate the price of Celsius's proprietary
token, CEL.
Mashinsky admitted to misleading
customers about the company's success and profitability, as well as secretly
selling his CEL holdings at artificially inflated prices. He now faces a
potential maximum prison sentence of 30 years.
Alex Mashinsky, the former CEO of
Celsius Network, has agreed to plead guilty to two felony charges—commodities
fraud and a scheme to manipulate the price of the CEL token.
The charges stem from allegations that
he misled investors about the platform’s Earn Program and his personal dealings
in CEL tokens. By doing so, he reportedly gained $42 million in profits.
Mashinsky pleaded guilty to two charges
out of the seven initially filed.
His admission includes making false
statements about Celsius’ regulatory status and his CEL token sales.
Under the agreement, he faces up to 30
years if the maximum consecutive sentences are imposed.
Charges were brought against Mashinsky
in July 2023. He previously denied all allegations, claiming innocence and
securing release on a $40-million bond.
The plea deal follows the dismissal of
his legal team’s motion to throw out the charges.
Roni Cohen-Pavon, Celsius’ former chief
revenue officer, also pleaded guilty to four charges related to CEL price
manipulation. Cohen-Pavon’s sentencing is set for Dec. 11.
