Alex Mashinsky will face a 30-year prison sentence for defrauding Celsius customers and manipulating prices.
Celsius was a very famous crypto lending platform, but in mid-2022, this platform crashed severely during high market volatility. Apparently, poor decisions by Celsius management related to financial operations led to the bankruptcy of this platform. On June 12, 2022, Celsius officially stopped withdrawal services and also filed for Chapter 11 bankruptcy in the United States Bankruptcy Court for the Southern District of New York.
On December 4, 2024, the United States Department of Justice published the full report on the investigation of the Celsius case.
According to the US Department of Justice, Mashinsky misled his clients about the platform’s achievements, profitability and investments in connection with client fund management. Alternatively, we can say that Celsius failed to perform better financial activity to provide returns to clients.
Additionally, former Celsius CEO Alex Mashinsky manipulated the trading price of the CEL token, the native token of the Celsius platform, to sell his own holdings of CEL tokens at artificially high prices, the The Justice Department said.
It’s worth noting that Celsius’ CEO originally pleaded not guilty to any of the charges following his arrest in July 2023, but things are now very clear.
For all these dark games, the CEO of Celsius will face up to 30 years in prison. As part of the plea deal, the former Celsius CEO will forfeit $48 million and sentencing is set for April 8, 2025.
Cel Token Price Action
The current trading price of Cel token is $0.26 and this price level is 3.34% higher in the last 24 hours. We can see how this latest news about the Celsius crypto fraud affected the sentiments of crypto investors.
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