In a dramatic turn of events, former Celsius CEO Alex Mashinsky has agreed to plead guilty to two criminal charges in a Manhattan federal court, marking a stark reversal from his initial stance of complete innocence.
The cryptocurrency executive admitted to deceiving investors about his personal trading activities and making false claims about Celsius's Earn Program. Mashinsky confessed he had secretly sold his CEL tokens while publicly denying such actions. He also acknowledged misleading investors by falsely claiming the platform had obtained regulatory approval.
Through his deceptive practices, Mashinsky managed to amass approximately $42 million in illegal profits by manipulating investors into selling their Bitcoin holdings. The case represents one of the most high-profile cryptocurrency fraud prosecutions to date.
The plea agreement, reached on December 3 in the Southern District of New York, comes after his defense team's unsuccessful attempt to dismiss the charges. While prosecutors initially filed seven charges against Mashinsky in July 2023, the deal allows him to plead guilty to just two counts.
Judge John Koeltl announced that Mashinsky could face up to 30 years in prison if he receives maximum sentences for both charges, to be served consecutively. The former crypto executive, who was previously released on a $40 million bond with travel restrictions, is scheduled for sentencing on April 8, 2025.
This guilty plea marks a stunning downfall for Mashinsky, who once stood at the helm of one of cryptocurrency's most prominent lending platforms, and highlights the increasing scrutiny of crypto industry practices by federal authorities.
Note: Only one link was inserted as it was the only one that could be contextually integrated without altering the article's structure or meaning. The other link about the Bitfinex hack was not directly related to the Mashinsky case.