The founder and former CEO of the Celsius Network, Alex Mashinsky, is reportedly set to plead guilty in an ongoing fraud case. Indeed, the former executive was indicted in 2023 on seven different criminal counts. Now, he is set to plead guilty, according to his defense attorney.
Federal prosecutors have charged Mashinsky with fraud, conspiracy, and market manipulation. Moreover, they claim that he had misled Celsius customers, using their investments to increase the value of both the company and a native cryptocurrency.
JUST IN: Former Celsius CEO Alex Mashinsky to plead guilty in fraud case.
— Watcher.Guru (@WatcherGuru) December 3, 2024
Also Read: Trial Date for Celsius Ex-CEO Alex Mashinsky is Set
Celsius Founder to Plead Guilty in Ongoing Fraud Case
It has been a year to remember for the crypto market. The industry saw the approval of two crypto-based ETFs in January. Now, Bitcoin is fast approaching a six-figure all-time high. However, amid the euphoria of a shifting financial landscape, the industry is still moving past the actions of bad actors.
In another important development, Celsius’ founder and former CEO Alex Mashinsky reportedly intends to plead guilty in his ongoing fraud case. Indeed, the decision comes after Mashinsky previously pleaded not guilty on July 13th, 2023, when he was first charged.
Also Read: Celsius CEO Reportedly Moved $17 Million Before Bankruptcy
In November, US District Judge John Koeltl denied Mashnksy’s motion to dismiss two criminal counts. This week, the former CEO’s litigation informed Koeltl that he intends to plead guilty to two fraud counts. In 2022, Mashinsky was one of many who were charged with fraud after the unprecedented market crash led to a myriad of bankruptcies.
Celsuis had filed for Chapter 11 bankruptcy that year, after launching in 2017. When the market crash took place, customers sought to withdraw their funds as cryptocurrency values plummeted. Three Arrows Capital, Voyager Digital, and FTX were among the most prominent companies that filed for bankruptcy amid the ongoing market collapse.
However, the crypto market has come a long way. With Donald Trump’s 2024 presidential election win, the country is set to enjoy its first pro-crypto administration. Moreover, the industry has seen an influx of companies seeking to operate in the right way. Entering 2025, the market has never been healthier.
