The former CEO of Celsius Network, Alex Mashinsky, was sentenced Thursday to 12 years in federal prison.
This decision follows its advocacy advocacy in December to organize a fraudulent diet which misleads investors and manipulated the market value of the native token of Celsius, that.
Sentence details
The American lawyer's office, New York South District, announcement Mashinsky prison on May 8.
“The founder and former head of the Celsius Network LLC and their affiliated entities were sentenced to 12 years for committing fraud and fraud in terms of securities in Celsius,” the press release read.
American district judge John G. Koeltl returned the verdict in courtroom 14a of the courthouse of the southern district of Manhattan. This occurs almost five months after the guilt of the former Crypto executive, in which he admitted to having exaggerated the financial stability of Celsius and promising promising yields.
“Alexander Mashinsky has targeted retail investors with promises he would keep their” digital assets “safer than a bank,” said American lawyer Jay Clayton. “In fact, he used these assets to place risky bets and to line his own pockets.”
During the judicial session, Mashinsky recognized its role by artificially increasing the price of CEL tokens while quietly selling tens of millions of dollars from its assets. The accused also agreed to lose the product of his illegal activities.
The prosecutors had pushed a 20-year sentence, arguing that the ex-CEO remained “unrepentant” and highlighting the generalized damage to customers of the cryptographic lender. Federal authorities also said that Mashinsky had a profit of $ 48 million in the program.
In the end, the 59 -year -old man accepted directives of determination of the sentence up to 30 years and renounced his right to appeal to any prison sentence in this interval in the context of his advocacy agreement.
Case of fraud of several billion dollars
Mashinsky's legal problems began in 2023 when apprehended for accusations of titles, basic products and wire fraud. His arrest coincided with the Celsius agreement to a regulation of $ 4.7 billion with the Federal Trade Commission (FTC), one of the most important in the history of the agency. However, the agreement still depends on the company that returns the assets of customers.
In September 2023, the former Director of Celsius income, Roni Cohen-Pavon, admitted guilt in the same case and agreed to cooperate with the authorities. This provided key information on the company's interior operations.
His testimony contributed to the broader case against Celsius and Mashinsky by the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) for the fraud program of several billion dollars.
Although the former executive initially denied the accusations, his guilty plea and the conviction on Thursday concludes a case that has exposed seriously serious conduct in one of the most prominent crypto loan companies.
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