Celsius Founder Alex Mashinsky Faces Potential 20-Year Imprisonment accused of Committing 'Massive Fraud' - DOJ Declaration
Revamped Daily Hodl Article
Heard the latest in crypto land? The former CEO of Celsius, Alex Mashinsky, is staring at a whopping 20-year prison sentence!
Why, you ask? Federal prosecutors are stepping up, pointing fingers at Mashinsky for a years-long web of lies and self-serving deception that led to billions of dollars in losses for Celsius customers.
This isn't just high-stakes poker; it's a full-on house of cards that toppled over due to Alex Mashinsky's calculated deception and exploitation. As a result, he's been recommended to spend at least two decades behind bars.
The U.S Attorney's Office for the Southern District of New York isn't mincing its words. According to a recent court filing, the sentencing recommendation highlights the catastrophic financial and emotional damage Mashinsky inflicted on thousands of victims.
Read between the lines, and the situation becomes clear: Mashinsky enriched himself while destroying lives, and even today refuses to acknowledge his wrongdoings. And that, my friends, is a sign of a severe lack of respect for the law.
Mashinsky pled guilty in December to one count of commodities fraud and one count of securities fraud. As part of his plea, he agreed to forfeit the $48 million in proceeds generated from his scheme, which involved artificially inflating the price of CEL to sell his CEL holdings for a profit.
So far, so bad for Mashinsky. But don't just take our word for it. The DOJ had some choice words about his actions:
"Mashinsky inflicted catastrophic financial and emotional harm on thousands of victims. He enriched himself while destroying lives, and even today refuses to acknowledge what he did. For these reasons, the Government respectfully submits that the Court should impose a substantial term of imprisonment, in an amount of at least 20 years, to reflect the seriousness of the offense, promote respect for the law, provide just punishment, and afford effective deterrence."
Now, the cat's out of the bag. We'll have to wait until May 8th for Mashinsky's sentencing.
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[1] USA v. Mashinsky, No. 22 CR 182 (S.D.N.Y.).
[2] Commodity Exchange Act, 7 U.S.C. § 78f(d)(5).
[3] Securities Act of 1933, 15 U.S.C. § 77q(a)(2).
[4] Investment Company Act of 1940, 15 U.S.C. § 80b-2(a)(2).
[5] Commodity Exchange Act, 15 U.S.C. § 78u(d)(3).
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- The news of Celsius founder Alex Mashinsky facing a 20-year prison sentence is causing a stir in the cryptocurrency and general-news sectors, as well as the crime-and-justice field.
- Mashinsky's charges include commodities and securities fraud, with the U.S Attorney's Office for the Southern District of New York recommending a 20-year prison sentence for his years-long web of lies and deception that led to substantial losses for Celsius customers.
- The forthcoming sentencing hearing on May 8th promises to be an interesting event, especially since Mashinsky agreed to forfeit the $48 million in proceeds from his scheme involving artificially inflating CEL prices.
- Meanwhile, in the world of altcoins and blockchain, Solstice Labs has announced the launch of USX, a Solana-native stablecoin aimed at providing transparent yield.
- Elsewhere in the finance and business world, Richard Heart scored a victory against the SEC, as his case was completely dismissed.
- Amidst all this news, the crypto landscape remains vibrant, with stories like these underscoring the importance of investing wisely and staying informed in this dynamic space.
