Former CEO of Celsius Alex Mashinsky was arrested on Thursday and was charged with misleading customers about the business. The bankrupt crypto exchange firm agreed to pay $4.7 billion in settlement, one of the highest in Federal Trade Commission’s history. Persecutors said the company misled customers about its business model.
Charges Against Mashinsky
According to federal prosecutors, Mr. Mashinsky, aged 57, allegedly deceived customers by giving them the false impression that Celsius was a secure option for their investments, despite the fact that it actually carried significant risks. Additionally, Mashinsky is facing charges of securities, commodities, and wire fraud, as well as multiple accusations of securities manipulation and fraud.
Mashinsky Could Face Decades in Prison
If convicted, Mashinsky and another key executive of the company, Roni Cohen-Pavon, could face decades in jail. Persecutors said Mr. Cohen was not yet arrested as he was not in the US at the moment.
