Alex Mashinsky will face a jail sentence of 30 years over defrauding Celsius customers & price manipulation.
Celsius was a highly famous crypto lending platform, but in mid-2022, this platform collapsed badly during high volatility in the market. Allegedly the Celsius leadership’s bad decisions related to financial operations resulted in the bankruptcy of this platform. On 12 June 2022, Celsius officially halted fund withdrawal services and further filed for chapter-11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of New York.
On 4 Dec 2024, the US Justice Department published the full report regarding the investigation in the Celsius case.
According to the US Justice Department, Mashinsky misled his customers about the platform’s achievement, profitability, and investments regarding customer funds management. Alternatively, we can say that Celsius failed to conduct better financial activity to provide returns to the customers.
Also, the Celsius ex-CEO Alex Mashinsky manipulated the trade price of the CEL token, the native token of the Celsius platform, to sell his own CEL token holdings at artificially high prices, the DOJ said.
It is worth it to note that Celsius’s CEO originally pleaded not guilty to any of the charges following his arrest in July 2023, but now things are crystal clear.
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For all these dark games, the Celsius CEO will face up to 30 years of jail sentence. As part of the plea deal, Celsius’ former CEO will forfeit $48 million & sentencing is set for April 8, 2025.
Cel token price action
The current trade price of Cel token is $0.26 & this price level is 3.34% higher over the last 24 hours period. We can see how this latest news regarding Celsius’s crypto fraud impacted the sentiments of crypto Investors.
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