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Crypto lender Celsius CEO Alex Mashinsky arrested, sued for fraud

Alex Omenye
Alex Omenye

Celsius Network’s creator and former CEO, Alex Mashinsky, has been detained and charged with fraud on Thursday, according to a U.S. prosecutor in New York.

According to the indictment, which was made public on Thursday, Mashinsky, 57, was accused with seven criminal crimes, including securities fraud, commodities fraud, and wire fraud, while Roni Cohen-Pavon, Celsius’ former chief revenue officer, was charged with four.

Mashinsky is one of several cryptocurrency billionaires who have been charged, dealing further damage to the sector, which has been coming to its senses following a decline in cryptocurrency prices.

Sam Bankman-Fried, the company’s founder, was accused with fraud last year and entered a not guilty plea.

The Manhattan U.S. Attorney’s Office announced that it would host a press conference to discuss the allegations against Mashinsky and Cohen-Pavon in more detail.

After clients scrambled to get their money back as cryptocurrency values dropped in July of last year, Celsius filed for Chapter 11 bankruptcy protection. Many people have been unable to use their money for over a year.


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