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Alex Mashinsky, former chief executive officer of Celsius Network Ltd., arrives at court in New York, US, on Thursday, May 8, 2025.

Yuki Iwamura | Bloomberg | Getty Images

Alexander Mashinsky, the former CEO of Celsius Network, was sentenced to 12 years in prison on Thursday after pleading guilty to two counts of fraud, a dramatic fall for the leader of a company once hailed as the “bank” of the crypto industry.

Standing before U.S. District Judge John G. Koeltl in Manhattan’s Southern District, Mashinsky faced the consequences of what prosecutors described as a sweeping scheme to defraud investors.

In December he pleaded guilty to commodities fraud and a scheme to manipulate the Celsius token.

His sentencing took place in courtroom 14A at 500 Pearl Street — a venue that has seen several crypto executives-turned-felons.

Mashinsky’s legal troubles began in 2023 when he was arrested on charges of securities, commodities, and wire fraud, just as Celsius reached a $4.7 billion settlement with the Federal Trade Commission — one of the largest in the FTC’s history.

The settlement, which remains contingent on Celsius returning what remains of customer assets in bankruptcy proceedings, underscored the magnitude of the fraud.

Prosecutors accused Mashinsky of misleading investors about the safety and profitability of Celsius’s yield-generating platform while secretly selling off tens of millions of dollars in personal holdings.

Though he initially denied wrongdoing, his guilty plea and Thursday’s sentencing mark the final chapter in a years-long case that also drew charges from the Securities and Exchange Commission and the Commodity Futures Trading Commission, which accused Celsius and Mashinsky of orchestrating a multi-billion dollar fraud scheme.

Mashinsky’s downfall mirrors the fate of other once-dominant crypto executives like FTX founder Sam Bankman-Fried, Binance’s Changpeng Zhao and Do Kwon of Terraform Labs.

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FTX

Bankman-Fried was sentenced to 25 years in prison in March 2024 for the massive fraud and conspiracy that doomed his cryptocurrency exchange and a related hedge fund, Alameda Research.

Once celebrated as a crypto wunderkind, Bankman-Fried was exposed for misappropriating billions of dollars in customer funds to support his own trading firm, Alameda Research, and for living an extravagant lifestyle in Hong Kong and later the Bahamas.

Caroline Ellison, who led Alameda Research and was romantically involved with Bankman-Fried, received a significantly lighter sentence of two years. Her cooperation with prosecutors proved crucial in unraveling the complex web of fraudulent activities at FTX, allowing authorities to build a strong case against Bankman-Fried and other executives.

Bankman-Fried is in the process of appealing his conviction and sentence.

Caroline Ellison is questioned as Sam Bankman-Fried watches during his fraud trial before U.S. District Judge Lewis Kaplan over the collapse of FTX, the bankrupt cryptocurrency exchange, at Federal Court in New York City, October 11, 2023 in this courtroom sketch.

Jane Rosenberg | Reuters

Ryan Salame, a former top lieutenant of FTX founder Sam Bankman-Fried, was sentenced to 90 months, followed by three years of supervised release.

FTX engineering chief Nishad Singh got no jail time and three years of supervised release for his role in the crypto fraud; and Gary Wang, the co-founder and chief technology officer of FTX, also avoided prison time.

In May 2024, the bankruptcy estate of FTX announced that almost all customers would get their money back — and more.

A judge on Wednesday dismissed most of the claims against celebrities and athletes who were involved in promoting FTX in commercials and on other platforms.

Stars like Tom Brady, Gisele Bündchen, Kevin O’Leary and Stephen Curry were among those facing a suit brought by a group of FTX investors.

Binance

In November 2023, Zhao, commonly known as “CZ,” struck a deal with the U.S. government to resolve a multiyear investigation into Binance, the world’s largest cryptocurrency exchange.

Zhao stepped down as CEO in 2023 but retained a significant stake in Binance.

In April 2024, Binance’s billionaire founder was sentenced to four months in prison after pleading guilty to charges of enabling money laundering at his crypto exchange. He served his sentence at a low-security federal prison in Lompoc, California.

Under new leadership, Binance has undergone a strategic pivot, aligning closely with the Trump administration’s pro-crypto stance. CEO Richard Teng described President Donald Trump’s second term as a “fantastic reset” for the cryptocurrency industry, noting a dramatically improved regulatory environment for Binance in the U.S.

Terraform Labs

PODGORICA, MONTENEGRO – JUNE 16: Do Kwon is taken outside of court on June 16, 2023 in Podgorica, Montenegro. Cryptocurrency TerraUSD and its companion token Luna collapsed in 2022, wiping out approximately 40 billion USD from the cryptocurrency market and Do Kwon, the founder was charged with fraud by American prosecutors following his arrest in Montenegro. (Photo by Filip Filipovic/Getty Images)

Filip Filipovic | Getty Images News | Getty Images

Whereas most stablecoins are backed up by a mix of cash and other assets to match the value of tokens in circulation, Kwon’s invention was instead backed by a complex set of code. When the algorithm failed in May 2022, it cost investors $40 billion in market value overnight, led to devastating losses to multiple investors, and contributed to the collapse of hedge fund Three Arrows Capital in June 2022, followed by crypto lenders Voyager Digital, then BlockFi, then Genesis — and, in a roundabout way, FTX too.

The stablecoin’s implosion also rocked confidence in the sector and accelerated the slide in cryptocurrencies already underway as part of a broader pullback from risk.

Last June, a judge signed off on Do Kwon and his bankrupt Terraform Labs settling with the U.S. Securities and Exchange Commission for $4.5 billion.

Kwon was extradited to the U.S. from Montenegro to face fraud charges in January 2025.

Ex-crypto tycoons awaiting judgement

The fall of crypto hedge fund Three Arrows Capital, and lenders Voyager Digital and Celsius, can all be traced to the collapse of Kwon’s stablecoin project.

When 3AC’s lenders asked for some of their cash back in a flood of margin calls, the money wasn’t there. Many of the firm’s counterparties were, in turn, unable to meet demands from their investors, including retail holders who had been promised annual returns of 20%.

The three companies all went bankrupt and are currently at various stages of settling their debts, with Celsius having just emerged from bankruptcy in January.

3AC co-founder Kyle Davies said he’s not sorry for the collapse of his fund, and has so far managed to avoid jail time by bouncing around the world, unlike his co-founder, Su Zhu, who served time in a Singaporean prison.

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FTX executives face sentencing for multibillion dollar fraud

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ZEEKR unveils new 001 design refresh with 900V architecture, 7-minute charging, and a ‘starry’ interior

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ZEEKR unveils new 001 design refresh with 900V architecture, 7-minute charging, and a 'starry' interior

Chinese EV brand ZEEKR has announced a new design refresh to its flagship 001 EV model – the second in as many years. This latest upgrade to the 001 features ZEEKR’s 900V architecture, enabling better performance and some of the fastest charging speeds we’ve seen. The interior also appears quite cozy, allowing for a starry night setting on the panoramic roof.

If you know anything about the EV brand ZEEKR, you’ve probably heard of the 001 shooting brake EV. The flagship EV initially debuted in April 2021 and found early success in China before expanding its availability to new markets in Europe.

By 2023, the 001 has contributed to 64% of Zeekr’s annual global sales, including a high-performance quad motor variant called the 001 FR that was introduced in 2023. However, ZEEKR began selling a new model called the 007 in January 2024, which immediately overtook the 001 in popularity.

As a result, ZEEKR introduced a 001 refresh in February 2024, which offered customers new, lower-priced trims, plus improved performance. Even after the refresh, ZEEKR’s other models, like the 007 GT (which features newer tech at a lower price), continue to outsell the 001. So, ZEEKR has gone back to its design lab and introduced yet another 001 refresh for 2025, a much bigger overhaul.

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  • ZEEKR-001-refresh-

ZEEKR 001 refresh will hit the market on October 11

Although most of China is currently on holiday to celebrate the Mid-Autumn Festival, ZEEKR’s marketing team was hard at work, sharing numerous images, videos, and performance specs of the new 001 refresh on social media channels like Weibo and WeChat.

According to the company, the 2025 001 refresh EVs are already making their way to ZEEKR showrooms around China before the official launch and start of deliveries on October 11. Those pre-order holders will be some of the first to experience the new 001 upgrades, which are centered around ZEEKR’s new E-Powertrain technology – a full-stack 900V architecture.

This is a significant upgrade from the 001’s previous 800V system. The result is significantly faster 12C charging, enabling 10-80% SOC in just seven minutes. Variants include an AWD version that offers 925 hp (680kW), accelerating from 0 to 100 km/h (0 to 62 mph) in 2.83 seconds to a top speed of 280 km/h (174 mph).

ZEEKR is also selling a RWD variant powered by CATL’s Qilin battery technology, offering notable (CLTC) range improvement of up to 810 km (503 miles). This version was equipped with a larger pack (113 kWh) compared to the 100 kWh in the 2024 model, which achieved a CLTC range of 750 km (466 miles).

ZEEKR-001-refresh-
Source: ZEEKR/Weibo

The 2025 ZEEKR 001 refresh also features plenty of upgrades to the interior. As showcased by the automaker in a video on Weibo, a new interior design theme called “Starry Sky Concert Hall” features premium textiles and an immersive display that can be activated across the EV’s interior roof. As you can see in the video here, stars and constellations twinkle amidst the glow of the moon, while shooting stars occasionally fly across the ceiling.

Other upgrades in the 001 refresh include a new chassis and “CCD Electromagnetic Damping System,” inclusion of ZEEKR’s G-AES (General Obstacle Avoidance) emergency active safety technology, which enables automatic avoidance at speeds up to 130 km/h (81 mph), and all-scenario tire blowout protection which can keep the shooting brake stable at speeds up to 120 km/h (75 mph) after a tire fails.

As mentioned above, the ZEEKR 001 refresh is expected to reach customers in China this weekend; however, there is no word yet on whether or when it will become available in other markets, such as Europe.

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Tesla is in hot water for mishandling insurance claims

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Tesla is in hot water for mishandling insurance claims

California is taking significant enforcement action against Tesla Insurance, alleging the company has been systematically failing to handle claims properly and harming its customers in the state. The California Department of Insurance announced the action, threatening to revoke Tesla’s license to operate in the state and impose significant fines.

This isn’t the first time we’ve seen Tesla’s insurance arm in hot water, but this action from a major market like California represents a serious escalation.

According to the press release, the California Department of Insurance has issued “Accusations” and “Notices of Orders to Show Cause” against Tesla Insurance Services, Inc., Tesla Insurance Company, and their partner, State National Insurance Company. The Department alleges that these companies have repeatedly failed to comply with California’s claims handling laws, leading to significant harm for policyholders – most of whom are Tesla drivers.

The Department of Insurance laid out some of the core allegations:

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  • Egregious delays in responding to policyholder claims in all steps of the claims handling process, causing financial harm, out-of-pocket expenses, potential third-party liability exposure, and distress to policyholders.
  • Unreasonable denials and delays in fully paying valid claims to consumers. Failure to conduct thorough, fair, and objective investigations of claims, thus denying consumers the insurance benefits they expect.
  • Failure to advise policyholders of their rights to have their claims denials reviewed by the Department – a major consumer protection in California to make sure insurers are held accountable by their regulator.

The state claims that despite numerous warnings and meetings where Tesla and its partners promised to improve, “the number of justified consumer complaints and violations continued to mount.”

The companies now face potential penalties of up to $5,000 for each unlawful, unfair, or deceptive act, or up to $10,000 for each act determined to be willful. Given the Department alleges “hundreds” of mishandled claims, the fines could quickly add up into the millions.

The companies have 15 days to respond to the allegations. If the issues are not resolved, the case will go before an administrative law judge to determine if Tesla can continue to sell insurance in California.

Electrek’s Take

That does sound like Tesla, especially the part where they are ignoring the notices.

This might be more important than it sounds, as insurance is critical to Tesla’s future, particularly if it is to be an autonomous one.

Tesla first started its insurance arm to lower cost to customers and “better account for how its autonomous driver assistance features improve safety.”

However, ultimately, Tesla drivers would find it hard to insure vehicles with level 3-5 autonomous driving technology, and Tesla planned to offer those services whenever it actually achieves these levels of autonomy.

Based on these statements by the California Department of Insurance, it doesn’t sound like Tesla is ready to take on that responsibility.

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Tesla teases stripped-down Model Y expected to be unveiled on Tuesday

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Tesla teases stripped-down Model Y expected to be unveiled on Tuesday

Tesla appears to be teasing its upcoming stripped-down Model Y, which is now expected to be unveiled on Tuesday, October 7th.

Yesterday, Tesla teased a product unveiling planned for October 7th with a cryptic image of what appears to be a wheel, or wheel cover, or a fan spinning.

Now, Tesla has released a second teaser and this time, it features headlights:

Our main guess with the first teaser was the new stripped-down Model Y, and this second teaser pretty much confirms it, as it features the same headlights as the prototypes already spotted in public and leaked on the website.

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The vehicle is based on the refreshed Model Y launched earlier this year, but Tesla removed many standard features to reduce the price.

One of the features removed is the front light bar, with now just the narrow headlights remaining.

Tesla has been teasing the release of “more affordable models” since last year, but there’s been confusion around what Tesla plans to release.

As we have reported for almost a year, CEO Elon Musk canceled Tesla’s planned “$25,000 EV” in favor of stripped-down versions of its Model 3 and Model Y.

Due to Tesla still referring to them as “new, more affordable models”, many people believed that Tesla would still bring to market new, cheaper models.

In fact, the automaker initially stated that it would arrive in the “first half of 2025.”

The first half of 2025 came and went without new, cheaper models. Instead, Tesla claimed that the “first build” of the new model was produced in June, and it will launch later this year.

In July, Musk finally confirmed that the first “new affordable model” is in fact simply a Model Y.

The new stripped-down Model Y is codenamed E41 and is expected to feature cheaper materials and fewer features than the normal Model Y, which starts at $45,000 in the US.

It is expected to be equipped with more affordable materials, such as a textile interior, and to lose the Model Y’s glass roof, as well as features like the rear screen and more.

Electrek’s Take

The problem with this program is that, rather than launching a brand-new model, it will mostly cannibalize Tesla’s existing Model Y sales.

At best, it will boost Model Y demand by ~10-15% when Tesla’s production capacity is operating at ~60%.

And to achieve that, I think the variant needs to be closer to $35,000 than the $40,000 we have seen in leaks earlier.

If that’s the case, I think it will do the same thing at the Cybertruck RWD that only lasted a few months because people felt they lost too many features for the $10,000 price difference.

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