Celsius Collapse: Former CEO Faces 20 Years in Prison
The U.S. Department of Justice (DOJ) is recommending a 20-year prison sentence for Alex Mashinsky, former CEO of Celsius Network, due to allegations of fraud and market manipulation, causing estimated losses of $4.7 - $7 billion for customers.
In 2021, Celsius Network managed over $25 billion in assets and marketed itself as a safe crypto bank, promising stable returns. However, in reality, the company engaged in high-risk venture capital activities and manipulated the price of the $CEL token to inflate its value, ultimately leading to bankruptcy in 2022.
The trial is scheduled for May 8th, with the DOJ emphasizing that a harsh sentence is necessary to prevent similar frauds in the future.