US Attorney's Office Announces Criminal Fraud Charges Against Alex Mashinsky

Authorities say they have reached a 'non-prosecution agreement' with Celsius, but former CEO Alex Mashinsky will face additional charges. criminal charges related to fraud and deception of users.

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The U.S. Attorney for the Southern District of New York and the Federal Bureau of Investigation have announced fraud charges against the former CEO of bankrupt crypto lender Celsius, Alex Mashinsky.

In a July 13 announcement, the U.S. Department of Justice said it had charged Mashinsky with securities fraud, commodities fraud, and wire fraud related to the alleged defrauding of customers and to have misled them "the success, the profitability and the nature of the investments" of Celsius. the platform made with user funds. However, authorities said they have reached a "non-prosecution agreement" with Celsius, which "has agreed to accept responsibility for its role in the fraudulent schemes".

"If you rip off ordinary investors to line your pockets, we will hold you accountable," said U.S. attorney Damian Williams. "Whether it's old-school fraud or new-school cryptography, it doesn't matter. It's all fraud to us. And we'll be there to catch it."

States United States Attorney Damian Williams speaking to reporters on July 13.

Former Celsius chief revenue officer Roni Cohen-Pavon and Mashinsky will also face charges of conspiracy, securities fraud, market manipulation and wire fraud related to manipulation of the price of the Celsius Token (CEL). According to the allegations, Mashinsky made about $42 million in profit from CEL sales by artificially inflating the price, while Cohen-Pavon pocketed about $3.6 million.

Authorities reported...