Unveiling Federal Fraud Charges Against Crypto Pioneer, Alex Mashinsky
Alex Mashinsky, the founding figure behind the now insolvent crypto lending firm, Celsius Network, denied guilt when confronted with fraud accusations in a federal court in Manhattan. At 57 years old, Mashinsky was presented with seven different charges – including securities fraud, commodities fraud, and wire fraud, unveiled on the same Thursday he was called to court.
Mashinsky Accused of Misleading Investors and Inflating Crypto Value
Federal regulators and prosecutors are accusing Mashinsky of not only misleading his customers but also artificially pumping up the worth of his company's unique crypto token. His company was based out of Hoboken, New Jersey.
Crypto Industry Reels as More Leaders Face Legal Repercussions
Mashinsky is not the only crypto industry leader to be indicted, delivering another blow to the cryptocurrency sector. This sector is already reeling from a decline in cryptocurrency prices, which has led to the downfall of multiple companies, one of which includes the major exchange FTX. FTX's founder, Sam Bankman-Fried, was also charged with fraud last year, and similarly, he pleaded not guilty.
Mashinsky's Court Appearance and Bond Details
Sporting a grey polo shirt and jeans, Mashinsky was not handcuffed when he showed up in court. U.S. Magistrate Judge Ona Wang declared that he would be allowed to leave on a $40 million bond, secured by his Manhattan residence.