TechFlow news — On December 4, according to the Associated Press, Alexander Mashinsky, founder and former CEO of the crypto lending platform Celsius Network, pleaded guilty on Tuesday in a New York federal court to charges of commodities and securities fraud, potentially facing decades in prison.
Mashinsky admitted to illegally manipulating the price of Celsius platform tokens between 2018 and 2022, secretly selling his own holdings at inflated prices and profiting approximately $48 million. He also acknowledged falsely implying in 2021 that the company had obtained regulatory approval and privately selling tokens in 2019 in violation of public commitments.
"I take full responsibility for my actions," Mashinsky said. Celsius had positioned itself as a modern bank, claiming users could safely deposit cryptocurrency assets and earn interest. The platform filed for bankruptcy in 2022. Sentencing is scheduled for April 8.
