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- Celsius founder Alex Mashinsky pleads guilty to two counts of fraud and market manipulation.
- In a December 3 hearing, Mashinsky agreed to a maximum sentencing guideline of 30 years in prison.
- Mashinsky was indicted for misleading customers into investing and inflating the price of the CEL token.
Alex Mashinsky, the founder of Celsius Network, just pleaded guilty to fraud and market manipulation. Reuters reports that Mashinsky has agreed not to appeal any sentence of 30 years or less. This is the maximum he faces for the two counts.
Mashinsky was indicted on July 13, 2023, on seven counts of fraud, conspiracy, and market manipulation of Celsius’s CEL token. Federal prosecutors in Manhattan said Mashinsky misled investors and artificially raised the price of the CEL token.
Mashinsky Admits to Illegal Actions
But Mashinsky admitted his illegal actions to US District Judge John Koeltl in Manhattan. He said he misled Celsius customers and raised CEL’s price for personal benefits. Investigative platform Inner City Press shared Mashinksy’s statement:
“I said that Celsius had approval from regulators. It was false. I falsely said I was not selling my CEL tokens, I accept full responsibility for my actions. I did not know which law it was violating, but I knew it was wrong … and illegal.”
Mashinsky also gave false promises to his clients during a 2021 interview, when he said the platform had been approved for its Earn program. The Earn program said it would give investment returns by using customers’ crypto assets.
Read also: Celsius Token CEL Skyrockets 62%, Signaling Renewed Interest
Mashinsky first said he was not guilty of the charges and tried to dismiss two counts, including commodities manipulation and market manipulation. But Judge Koeltl said the defendant’s arguments were wrong.
Per the prosecution’s estimations, Mashinsky amassed a total of $42 million through the sale of the CEL tokens he held. As Mashinsky has pleaded guilty and agreed to accept imprisonment, Judge Koeltl is set to sentence him on April 8, 2025.
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