The founder and former CEO of the now-bankrupt cryptocurrency lending platform Celsius Network, Alex Mashinsky, has pleaded guilty to two counts of fraud. According to reports, Mashinsky has agreed to a maximum prison sentence of 30 years.
His guilty plea comes after he was initially charged with seven counts related to the operation and collapse of Celsius in 2022, including fraud and conspiracy. Mashinsky admitted to lying about the platform's regulatory approval and his personal sale of CEL tokens.
He expressed remorse, stating he knew his actions were wrong, even if he was unsure which laws they violated. This development follows a series of events that led to Celsius halting withdrawals and filing for bankruptcy in 2022, amidst a broader crypto market downturn.
The company's financial woes were exacerbated by its own practices, including making uncollateralized loans despite Mashinsky's assurances to the contrary. He is scheduled for sentencing in April 2025.