Alex Mashinsky, the former CEO and founder of bankrupt crypto lender Celsius Network, has been arrested and charged with fraud by U.S. prosecutors. Mashinsky faces seven criminal charges, including securities fraud, commodities fraud, and wire fraud. Mashinsky was accused by prosecutors of leading a scheme to deceive customers and manipulate cryptocurrency prices for personal gain - The indictment, unsealed on Thursday, also reveals that Roni Cohen-Pavon, Celsius' former chief revenue officer, was charged with four criminal counts.
- Additionally, three federal regulatory agencies have filed lawsuits against Mashinsky and/or Celsius, accusing them of defrauding investors.
- The FTC also announced a $4.7B settlement with the exchange, which will be held until creditors and investors are repaid in bankruptcy proceedings.
- Celsius Network filed for Chapter 11 bankruptcy protection almost exactly a year ago. Launched in 2017, it offered customers as much as 18% interest on crypto deposits.
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