Following a failed attempt by Alex Mashinsky's defense team to have the charges against him dismissed, the former CEO of Celcius reached a plea deal with US federal prosecutors on December 3 during a hearing in the Southern District of New York.
Mashinsky confirmed he would admit guilt to two criminal charges. He confessed to falsely asserting that he was not offloading his CEL
He also acknowledged that he had misled investors about the Celsius Earn Program, falsely claiming the platform had regulatory approval. This misleading information encouraged individuals to sell their Bitcoin
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Mashinsky is set to be sentenced on April 8, 2025. At first, Mashinsky pleaded not guilty to all charges and was released on a $40 million bond with travel restrictions, while the trial had been scheduled to start in January 2025.
Out of the seven charges initially filed by prosecutors in July 2023, Mashinsky's plea agreement allows him to admit guilt to only two. If sentenced to the maximum penalty for both charges, Mashinsky could face up to 30 years in prison, with the sentences served consecutively, according to Judge John Koeltl.
Meanwhile, in another high-profile case, FTX co-founder Gary Wang walked free after serving his time—how did he manage to avoid further punishment? Read the full story.
