Former Celsius CEO Admits Guilt on Two Charges

Former Celsius CEO Alex Mashinsky admitted guilt on two of seven charges—commodity fraud and manipulation of the CEL token price.

“I said that Celsius had received approval from regulators. That was a lie. I lied about not selling my CEL tokens. I take full responsibility for my actions,” Mashinsky stated on December 3 at a court session in the Southern District of New York.

The judge accepted the former Celsius director’s plea. Preliminary estimates suggest he faces up to 30 years in prison. Sentencing is scheduled for April 8, 2025.

Until the last session, Mashinsky continued to deny the charges, despite his colleague Roni Cohen-Pavon admitting guilt. The former Celsius head remained free on a $40 million bail.

The businessman’s lawyers requested the court to drop two charges, but their arguments did not satisfy the judge, and the request was denied on November 8. Consequently, he pleaded guilty to these counts.

Back in January 5, 2023, Mashinsky was accused of defrauding investors, and on July 13, he was arrested. The Celsius head hired the same lawyers who defended the interests of the bankrupt FTX exchange founder Sam Bankman-Fried.

On November 28, 2024, Celsius bankruptcy managers announced plans to distribute $127 million among creditors.