The founder and former CEO of the failed cryptocurrency lending platform Celsius Network has pleaded guilty to federal fraud charges, admitting that he misled customers about the business. Alexander Mashinsky entered the plea Tuesday in Manhattan federal court to commodities and securities fraud.
FILE - Alexander Mashinsky, founder and former chief executive of the failed cryptocurrency lending platform Celsius Network, leaves Manhattan federal court with his legal team, July 25, 2023, in New York. could face decades in prison after pleading guilty Tuesday to federal fraud charges, admitting that he misled customers about the business.
And he said that in 2019, he was selling the crypto tokens even though he told the public that he was not. He said he knew customers would draw false comfort from that too. He said Mashinsky used catchy slogans like “Unbank Yourself” to entice prospective customers with a pledge that their money would be as safe in crypto accounts as money would be in a bank. Meanwhile, prosecutors said, Mashinsky and co-conspirators used customer deposits to fund market purchases of the Celsius token to prop up its value.
An indictment alleged that Mashinsky promoted Celsius through media interviews, his social media accounts and Celsius’ website, along with a weekly “Ask Mashinsky Anything” session broadcast that was posted to Celsius’ website and a YouTube channel.
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