MANIPULATION

Fallen Crypto Honcho Arrested, Facing Decades in Prison on New Fraud Charges

Meanwhile, Alex Machinsky’s former company, Celsius, has reached a staggering $4.7 billion settlement with government regulators.

Authorities on Thursday arrested Alex Mashinsky, the former CEO of bankrupt crypto company Celsius, on a slate of federal charges including securities fraud and manipulation. Prosecutors say Mashinsky and Celsius misled investors about the exchange’s risks and illegally altered the price of CEL, the company’s trademark token, CNBC reported. If convicted, Machinsky could spend decades behind bars. “Mashinsky misrepresented, among other things, the safety of Celsius’s yield-generating activities, Celsius’s profitability, the long-term sustainability of Celsius’ high rewards rates, and the risks associated with depositing crypto assets with Celsius,” prosecutors allege in court filings. Government regulators simultaneously announced a settlement with Celsius that will see the company hand over $4.7 billion, but only after Celsius goes through bankruptcy proceedings and pays off its investors.