Alex Mashinsky, founder and former CEO of bankrupt cryptocurrency lender Celsius Network, pleaded not guilty to US fraud charges that he misled customers and artificially inflated the value of his company's propriety crypto token
Mashinsky was charged with seven criminal counts - including securities fraud, commodities fraud and wire fraud - according to an indictment unsealed earlier on Thursday.
"Whether it's old-school fraud or some new-school crypto scheme, it doesn't matter one bit. It's all fraud to us," U.S. Attorney Damian Williams said at a press conference detailing the charges.in July 2022 after customers rushed to withdraw deposits as crypto prices fell. Many have been unable to access their funds.as crypto prices surged during the COVID-19 pandemic.
Prosecutors alleged Mashinsky also personally reaped approximately $42 million in proceeds from selling his holdings of the Cel token. Celsius was not charged. The SEC, along with other regulatory agencies which also filed lawsuits Thursday, accused Mashinsky and his company of touting Celsius as safe - akin to a traditional bank - even as they took increasingly risky steps to deliver promised returns of as much as 17%.
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