Alex Mashinsky, Former CEO of Celsius Network, Arrested for Alleged Price Manipulation
Alex Mashinsky, the former CEO of the now-bankrupt crypto lending platform Celsius Network, has been taken into custody by the U.S. Department of Justice. He is facing seven criminal charges for alleged price manipulation of Celsius’ native digital currency, CEL, which resulted in him gaining over $40 million in profits.
Key Points:
- Alex Mashinsky, former CEO of Celsius Network, arrested for alleged price manipulation
- Mashinsky accused of gaining over $40 million from the manipulation of CEL
- Former Chief Revenue Officer of Celsius, Roni Cohen-Pavon, also facing charges
- Mashinsky indicted with federal charges including securities fraud and commodities fraud
- Celsius Network filed for bankruptcy after being unable to cover its liabilities
According to Michael A. Brodack, who leads the Criminal Division of the New York Field Office, cases like this serve as a warning that fraudulent activities in the crypto market will not go unpunished. The former Chief Revenue Officer of Celsius, Roni Cohen-Pavon, is also suspected of gaining around $3.6 million through fraudulent means.
In response to the events, U.S. Attorney Damian Williams emphasized the importance of holding individuals accountable for defrauding ordinary investors for personal gain. Celsius Network, once positioned as a safe choice for cryptocurrency lending, declared bankruptcy after being unable to cover its liabilities.
Hot Take:
This case highlights the need for regulatory measures and accountability in the crypto market. The arrest of Mashinsky and the charges against Cohen-Pavon send a strong message that fraudulent activities will not be tolerated. Investors should exercise caution and skepticism, as “too good to be true” promises may come at a high cost.
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