Former Celsius CEO pleads guilty to two fraud charges

Former cryptocurrency leader Alex Mashinsky has pleaded guilty to two fraud charges. The founder and CEO of Celsius Network was indicted on seven criminal counts in 2023, including charges of fraud, conspiracy and market manipulation. He entered a not guilty plea at the time, but in a hearing today, Mashinsky pled guilty to two of those original counts. The first is commodities fraud and the second is a fraudulent scheme to manipulate the price of his company's in-house crypto token CEL. Reuters reported that as part of a plea deal, Mashinsky has agreed not to appeal any sentence of 30 years or less.

Mashinsky's case is one of several fraud cases being pursued against leaders of cryptocurrency operations. The most well-publicized charges are those brought against FTX founder Sam Bankman-Fried, who was found guilty on seven counts of fraud in 2023.

National agencies began a push into fraud charges for cryptocurrency schemes in 2022, when several notable companies filed for bankruptcy as token prices plummeted in response to rising interest rates and high inflation. That year, the Federal Trade Commission said that victims of crypto schemes had lost more than $1 billion since 2021.