Celsius founder Mashinsky admitted to misleading users and manipulating CEL token prices.
Former Celsius CEO Alexander Mashinsky may be headed to at least 20 years in prison after he pleaded guilty to running a massive fraud scheme that bilked thousands of investors. Prosecutors allege Mashinsky spent customer money irresponsibly, made false claims about the company’s finances, and manipulated the price of the CEL token to make more than $48 million for himself. Celsius, once considered a crypto investor paradise, collapsed in 2022. The subsequent meltdown left ordinary investors stunned with estimated aggregate losses of more than $550 million.
Mashinsky pleaded in December 2024 to counts of defrauding regarding Celsius’s security and manipulating the company’s token. Prosecutors argue, however, that he still fails to accept full responsibility, deflecting blame and hiding assets in family trusts he controls.
CEL Token Surges in spite of Legal Defeat
In a dramatic twist, the CELSIUS token saw a dramatic surge following the news of sentencing. CEL jumped more than 70% in 24 hours, reaching an all-time high of $0.1782 before stabilizing at around $0.15. The surge happened even as Mashinsky faces sentencing by a New York federal judge. Even with the recent surge, CEL is still well below its 2021 high of $8.02—currently more than 98% lower than that record high. Analysts say the surge may be a result of short-term hype or speculative trading, rather than a recovery sign. The decision to sentence will establish an important precedent for crypto industry accountability.
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