Celsius Network's Ex-CEO Gets 12 Years in Slammer for Fraudulent Deeds
Convicted ex-CEO of Celsius cryptocurrency service faces 12-year imprisonment - Convicted ex-Celsius cryptocurrency platform leader receives 12-year imprisonment.
Here's the lowdown: Alex Mashinsky, the former big cheese of Celsius Network, is looking at a hefty 12-year stint behind bars due to his fishy business dealings. The U.S. Attorney's Office in Manhattan slammed him with charges for unsavory activities like securities and commodities fraud, conspiracy, market manipulation, and wire fraud.
Let's dig a little deeper into these allegations. Mashinsky is said to have manipulated the value of Celsius's self-created crypto token, CEL, and sold his personal CEL stash at inflated prices, all while keeping it hush-hush. On top of that, he spread misleading brouhaha to customers, giving them a rosy picture about the platform's stability and regulatory confirmation - just part of his scheme to dupe investors.
Peaks and Valleys: At its prime in late 2021, Celsius had an impressive customer base of over a million folks who stashed away more than $25 billion on the platform. However, when cryptocurrency values tanked in the spring of 2022, Celsius felt the heat. With customers clamoring to withdraw their funds, the platform froze all withdrawals in mid-June 2022 and later sought bankruptcy protection in July. At the time, customers' funds amounted to a hefty $4.7 billion. According to a report from March this year, a whopping 93% of those funds have been dished back to former customers.
Mashinsky, now 50, was apprehended in the sweltering summer of 2023. He copped a plea deal in December of last year, scoring himself a reduced sentence.
- The cryptocurrency industry was shaken when the former chief of Celsius, Alex Mashinsky, was convicted of securities and commodities fraud, manipulation, and wire fraud, sentencing him to 12 years in prison.
- Mashinsky, while serving as the CEO of Celsius, is accused of manipulating the value of Celsius's self-created crypto token, CEL, and selling his personal CEL stash at inflated prices.
- With millions of customers depositing more than $25 billion on Celsius, the platform was a significant player in the fintech sector, particularly in the general-news and crime-and-justice segments.
- In the spring of 2022, when cryptocurrency values plummeted, Celsius halted customer withdrawals, adding to the anxiety in the crypto market.
- Despite the legal troubles, including Mashinsky's conviction, the Celsius Network has reportedly returned 93% of the frozen funds to its former customers.
