Founder of Celsius Network Faces Fraud Charges: Alex Mashinsky Pleads Not Guilty

Jakarta –

Alex Mashinsky, founder and former CEO of the company crypto- The bankrupt Celsius Network has pleaded not guilty to fraud charges. Alex was charged by the court that he committed fraud and misled Celsius customers.

Mashinsky has been charged with seven criminal counts. This ranges from securities fraud to commodity fraud according to the indictment that was unsealed earlier Thursday in Manhattan Court.

Judge at Manhattan Court, Ona Wang said Mashinsky will be released on bail of US $ 40 million or Rp. 596 billion (exchange rate of Rp. 14,900). The 57-year-old man arrived at federal court in Manhattan for his arraignment wearing a gray shirt, jeans and uncuffed.

However, the public prosecutor, Damian Williams, insisted that what Mashinsky did was wrong and unlawful.

“Whether it was fraud in the old way or the new doesn’t matter one bit. It was all fraud to us,” Damian Williams said at a press conference detailing the charges. ReutersFriday (14/7/2023).

Mashinsky originally founded Celsius in 2017, but in July 2022 the company filed for bankruptcy protection after customers rushed to withdraw deposits as crypto prices fell. Crypto companies like Celsius have indeed grown rapidly as crypto prices have soared during the COVID-19 pandemic.

Celsius promises easy access to loans and attractive interest rates for depositors, then lends tokens to institutional investors, hoping to profit from the difference. When crypto prices slumped, Celsius also experienced the phenomenon of bankruptcy amid rising interest rates and very high inflation.

Former Chief Revenue Officer of Celsius, Roni Cohen-Pavon was also charged with market manipulation of the company’s crypto token, known as Cel. There are also fraudulent schemes to manipulate cryptocurrency prices and wire fraud related to asset manipulation.

The public prosecutor alleges that Mashinsky also personally made a profit of around US$42 million or Rp.625 billion from the sale of his Cel tokens.

A line of lawsuits to crypto bosses on the next page.

(hal/ara)

2023-07-14 01:46:08
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