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Celsius CEO Pleads Guilty, Faces As Much As 30 Years for Crypto Fraud

As part of his plea deal, Mashinsky agreed not to appeal any conviction less than 30 years in prison.
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Dec 4, 2024 • 1 min read

Former Celsius CEO Alex Mashinsky pleaded guilty to two criminal charges, the charges stem from allegations of defrauding customers and misrepresenting the firm’s financial standing.

What's the Scoop?

  • Mashinsky faced multiple charges, including securities and wire fraud, in July 2023. He admitted guilt to commodities fraud and price manipulation, carrying potential penalties of up to 30 years in prison.
  • Celsius, a crypto lender, declared bankruptcy in 2022 and completed its wind-down in 2024, partially funding a bitcoin mining venture.

Bankless Take

Mashinsky’s guilty plea highlights the ramifications of criminal mismanagement. Celsius’ collapse, marked by misleading claims and token manipulation, shows the risks of operations in CeFi crypto lending. While justice is progressing, the industry must prioritize transparency and restore trust to avoid repeating past failures.

Not financial or tax advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This newsletter is not tax advice. Talk to your accountant. Do your own research.

Disclosure. From time-to-time I may add links in this newsletter to products I use. I may receive commission if you make a purchase through one of these links. Additionally, the Bankless writers hold crypto assets. See our investment disclosures here.

Published in Bankless

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