Former Celsius CEO Alex Mashinsky Pleads Guilty

Former Celsius CEO Alex Mashinsky pleaded guilty to several criminal charges, according to multiple reports.

Mashinsky faced charges of securities fraud, commodities fraud, wire fraud, and others, stemming from the original complaint filed in July 2023.

On Tuesday, Mashinsky pleaded guilty to two counts: commodities fraud and a fraudulent scheme to manipulate the price of the firm's native token. These charges could lead to a sentence of up to 20 years in prison, according to Bloomberg.

At 59 years old, Mashinsky was arrested in 2023, as prosecutors accused him of defrauding customers and misleading them about Celsius’ profitability. Celsius functioned as a crypto lender, allowing customers to earn interest and take out loans. The firm declared bankruptcy in 2022 and was wrapped up earlier this year. During its wind-down process, some funds were used to establish a new bitcoin mining company named Ionic Digital.

In July 2023, prosecutors from the Southern District of New York stated that Mashinsky "repeatedly made public misrepresentations regarding core aspects of Celsius’s business and financial condition to induce retail customers to provide their crypto assets to Celsius and continue using its services."

Mashinsky has also faced scrutiny from multiple regulators. In July 2023, the Securities and Exchange Commission sued both the crypto lender and Mashinsky for allegedly raising billions through fraudulent and unregistered crypto sales, consistently deceiving investors about Celsius’ financial situation, and manipulating the price of CEL, the company's native token.

Update: Dec. 3, 9:10 p.m. UTC – included details about the bankruptcy.