Alexander
Mashinsky, the
Founder of the bankrupt cryptocurrency lender Celsius Network was arrested
today (Thursday) in New York. The arrest comes as the United States Department
of Justice (DOJ) and several regulators slammed multiple lawsuits against the
troubled Founder and his company.
In the complaint filed by DOJ before the district court in
New York, United States Attorney Damian Williams unveiled seven counts of
charges against Mashinksy and Roni Cohen-Pavon, Celsius’ former Chief
Revenue Officer. These include allegations of securities, commodities and wire
fraud as well as token
manipulation.
UPDATE: Per DOJ indictment, legal minds expect Alex Mashinsky to face a lengthy prison sentence.
“These (DOJ) charges, and the scale of capital involved, means he doesn’t have a meaningful path to a plea; looking at 15-20 years.”
Securities fraud, wire fraud, conspiracy:…
— Andrew (@AP_Abacus) July 13, 2023
The US law enforcement agency accused Mashinky of luring investors by lying about
Celsius’ financial status and inflating the price of the business’ native token
CEL. Because the former Celsius CEO ‘falsely portrayed’ Celsius as a ‘safe and
secure institution’, the digital lending business ‘grew exponentially’
to become one of the biggest crypto lenders in the world, ‘purportedly’
managing about $25 billion at its peak period in the fall of
2021.
Finance
Magnates reported that Celsius, which entered the markets in 2018 through an
initial coin offering, filed for bankruptcy in July last year, weeks after suspending withdrawal on its platform, citing
market volatility.
Alexander
Mashinsky, the
Founder of the bankrupt cryptocurrency lender Celsius Network was arrested
today (Thursday) in New York. The arrest comes as the United States Department
of Justice (DOJ) and several regulators slammed multiple lawsuits against the
troubled Founder and his company.
In the complaint filed by DOJ before the district court in
New York, United States Attorney Damian Williams unveiled seven counts of
charges against Mashinksy and Roni Cohen-Pavon, Celsius’ former Chief
Revenue Officer. These include allegations of securities, commodities and wire
fraud as well as token
manipulation.
