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Celsius boss admits fraud: faces 30 years in prison!
In the fraud trial of Alex Mashinsky, founder of the crypto bank Celsius Network, he pleaded guilty to parts. The allegations include commodity fraud and manipulation of the cryptocurrency CEL.
Celsius boss admits fraud: faces 30 years in prison!
In the latest multi-billion dollar fraud trial surrounding the failed crypto bank Celsius Network, founder Alex Mashinsky pleaded guilty on Tuesday to partial guilt. Loud krone.at Mashinsky admitted that in 2021 he falsely claimed approval by authorities of the US savings program “Earn”, which promised its customers interest rates of up to 17 percent. “I know what I did was wrong,” he said, promising to do everything he could to make amends. This deal with prosecutors stipulates that he will not appeal a possible maximum sentence of 30 years in prison.
Sentence and allegations
Mashinsky faces not only these allegations, but also other allegations that accuse him of embezzling millions for personal purposes. Celsius' bankruptcy was a direct result of massive withdrawals of customer funds in the summer of 2022. This situation is strongly reminiscent of the trial against Sam Bankman-Fried, the founder of the crypto exchange FTX, who was sentenced to 25 years in prison in the spring spiegel.de reported. Mashinsky has reached a groundbreaking moment that could have consequences for the entire crypto industry.