Former Celsius Network CEO pleads guilty to two fraud charges

Former Celsius Network CEO pleaded guilty to two of seven counts of fraud on Dec. 2, 7, for deceiving clients into investing.

On December 3, 2567, Reuters news agency reported that Alex Mashinsky, founder and former CEO of cryptocurrency lending company Celsius Network, pleaded guilty to two counts of fraud on Dec. 2, 3.

Mashinsky, 59, was indicted on July 13, 2566, on seven counts of fraud, conspiracy and market manipulation. Manhattan federal prosecutor said He allegedly deceived Celsius customers into investing and artificially inflated the value of the company’s proprietary crypto tokens, but denied the allegations that day.

On December 3, 67, during a hearing before a U.S. District Court judge John Colt, former CEO of Celsius Network said He pleaded guilty to two of the seven initial charges, including commodities fraud and conspiracy to fraudulently manipulate the price of Celsius's in-house token, CEL.

Mashinsky admitted to providing false comfort to Celsius customers in a 2564 interview. Celsius has reportedly received regulatory approval for its “Earn” program, which it said was not approved. The program offers to leverage clients’ cryptocurrency assets to generate returns on their investments.

Mashinsky said “I know what I did was wrong, and I want to do everything I can to make it right.”

As part of his plea agreement with prosecutors, Mashinsky agreed not to appeal the maximum sentence of 30 years or less in prison he faces for the two counts. Koeltl is scheduled to sentence him on April 2, 8.

Celsius, founded in 2560, filed for Chapter 11 bankruptcy protection in July 2565 after customers withdrew their deposits as cryptocurrency prices plunged. Many were initially unable to access their money. The company exited bankruptcy protection on Jan. 31 and has since turned to Bitcoin mining.

refer : reuters.com

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