Celsius Network Founder Admits to Fraud

Alexander Mashinsky, the founder and former CEO of the failed crypto lending platform Celsius Network, has pleaded guilty to federal fraud charges. He admitted to manipulating the price of Celsius’s crypto token and lying to customers about the company's practices. Mashinsky, aged 58, entered his plea in a New York federal court, where he could face up to 30 years in prison. He acknowledged deceiving customers about regulatory approval and selling his own tokens secretly, pocketing around $48 million before the company's 2022 bankruptcy.

Mashinsky's actions included using customer deposits to boost the token's value and making false promises about safety. Celsius Network grew to become one of the world's largest crypto platforms, with assets reaching about $25 billion at its peak. Despite warnings from employees, Mashinsky continued his deceptive practices. His sentencing is scheduled for April 8.

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