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Alex Mashinsky, the founder and former CEO of cryptocurrency lender Celsius Network, pleaded guilty on Tuesday to two counts of fraud.

Mashinsky, 59, was indicted on July 13, 2023, on seven counts of fraud, conspiracy and market manipulation charges. Federal prosecutors in Manhattan said he misled customers of Celsius to persuade them to invest, and artificially inflated the value of his company’s proprietary crypto token. He pleaded not guilty later that day.

US District Judge John Koeltl in November denied a motion by Mashinsky to dismiss two criminal counts ahead of his trial, which had been slated for Jan. 28.

On Tuesday, during a hearing before Koeltl, Mashinsky said he agreed to plead guilty to two out of the seven counts he was initially charged with: commodities fraud, and a fraudulent scheme to manipulate the price of CEL, Celsius in-house token.

In court, Mashinsky admitted to giving Celsius customers false comfort by giving an interview in 2021 in which he said Celsius had received approval from regulators for its Earn program, which it had not.

He said he also failed to disclose that he had been selling his holdings of CEL, the platforms in-house token.

I know what I did was wrong, and I want to try to do whatever I can to make it right, Mashinsky said.

As part of his plea deal with prosecutors, Mashinsky agreed not to appeal any sentence of 30 years or less – the maximum he faces for the two counts. Koeltl is set to sentence him on April 8, 2025.

Federal prosecutors in Manhattan have said Mashinsky also personally reaped approximately $42 million in proceeds from selling his holdings of the Cel token.

“Mashinsky made tens of millions of dollars selling his own CEL at artificially high prices, while his customers were left holding the bag when the company went bankrupt,” Damian Williams, the U.S. Attorney in Manhattan, said in a statement on Tuesday.

Before pleading guilty, Mashinsky had been scheduled to go on trial on Jan. 28.

“Sometimes, accepting responsibility when and where appropriate is the best way to help everybody move on,” Mashinsky’s defense lawyer Marc Mukasey told reporters after the hearing on Tuesday.

Founded in 2017, Celsius filed for Chapter 11 bankruptcy protection in July 2022 after customers rushed to withdraw deposits as crypto prices fell. Many were initially unable to access their funds. The company exited bankruptcy on Jan. 31, and has pivoted to Bitcoin mining.

Crypto lenders such as Celsius grew rapidly as crypto prices surged during the COVID pandemic. They promised easy loan access and eye-popping interest rates to depositors, then lent out tokens to institutional investors, hoping to profit from the difference.

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Mashinsky was one of several crypto moguls to be charged with fraud after a slump in crypto prices in 2022 caused a number of companies, including now-bankrupt exchange FTX, to collapse.

Prices for digital assets like Bitcoin have since surged, in part due to optimism about President-elect Donald Trump’s expected policies friendly toward cryptocurrency.

Celsius’ former chief revenue officer, Roni Cohen-Pavon, pleaded guilty in September 2023 and agreed to cooperate with prosecutors’ investigation.

FTX’s founder Sam Bankman-Fried was convicted of stealing roughly $8 billion from the exchange’s customers in November 2023 and sentenced in March to 25 years in prison.

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Betting markets predict bullish 2025 for crypto

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Betting markets predict bullish 2025 for crypto

Prediction markets Kalshi and Polymarket anticipate a slew of wins for crypto in 2025.

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Science

New discovery explains how gold forms in Earth’s volcanic zones!

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New discovery explains how gold forms in Earth's volcanic zones!

A breakthrough discovery by an international team of scientists has highlighted the role of a gold-sulfur complex in the formation of gold deposits on Earth. The study, co-authored by Adam Simon, Professor of Earth and Environmental Sciences at the University of Michigan, was recently . It details the previously unknown conditions under which gold is transported from deep within the Earth’s mantle to the surface.

Role of the Gold-Trisulfur Complex

According to the research, published in the Proceedings of the National Academy of Sciences (2024), a unique gold-trisulfur complex forms under specific pressure and temperature conditions in the mantle, situated 30 to 50 miles beneath active volcanic zones. This complex, which has been debated in scientific circles, plays a significant role in the enrichment of gold in magma that travels to the surface. The findings shed light on why certain subduction zones, where tectonic plates converge, are particularly rich in gold deposits.

Volcanic Activity and Gold Deposits

The study highlights subduction zones around the Pacific Ring of Fire, where volcanic activity is prevalent, as key areas for gold formation. These regions, including locations such as New Zealand, Japan, Alaska, and Chile, provide the ideal geological environment for magma to carry gold from the mantle to surface deposits. The researchers link the processes behind volcanic eruptions to the mechanisms that concentrate gold in these zones.

Scientific Findings and Practical Applications

The researchers developed a thermodynamic model to simulate mantle conditions and confirm the existence of the gold-trisulfur complex. This model not only validates earlier theories about gold-sulfur interactions but also provides a clearer picture of the conditions required for gold-rich mineral systems to form.

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First Perentie Lizards Hatched at Los Angeles Zoo: A Major Breeding Milestone

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First Perentie Lizards Hatched at Los Angeles Zoo: A Major Breeding Milestone

Two perentie lizards, among the largest species of lizards globally, have hatched at the Los Angeles Zoo, marking the first time this species has been bred there. Native to Australia, these carnivorous reptiles are known for their impressive size, often exceeding 8 feet in length and weighing over 40 pounds. The zoo, which is one of the few facilities outside Australia to successfully breed them, is now home to the newly hatched pair, who are being carefully monitored in a controlled environment.

First Breeding Success Highlighted by Experts

According to reports from usnews.com, the perentie lizards were bred and hatched for the first time in the facility’s history. Byron Wusstig, curator at the Los Angeles Zoo, shared with the Associated Press that achieving this milestone is a significant accomplishment for the team. These lizards, classified as Varanus giganteus, are rarely seen in zoos outside their native Australia, despite not being endangered.

Special Care for Hatchlings in Early Stages

Reports confirm that the hatchlings are thriving under close observation by the zoo’s staff. They are being kept off-exhibit in a specially managed setting to ensure their health during these crucial initial months. The lizards will eventually join the Australia section of the zoo, near the Komodo dragon habitat, where the father is currently on display.

This species is characterised by its distinct brown skin adorned with cream or yellow markings. Their diet, as stated in reports, includes turtle eggs, insects, birds, small mammals, marsupials, and other reptiles, all of which are consumed whole. As per zoo officials, this breeding success highlights the capabilities of the institution in conserving and caring for unique species, contributing to the understanding of their behaviour and needs in captivity.

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