Feds Arrest Crypto CEO For Alleged Fraud Scheme

Politico reports:

U.S. authorities on Thursday arrested Alex Mashinsky, the former CEO of failed crypto lending platform Celsius Network, on fraud charges while regulators levied a host of allegations of their own against him and other executives.

In the latest sign that the federal crackdown on crypto is still unfolding, prosecutors alleged in a criminal complaint filed in the Southern District of New York that Mashinsky, 57, “orchestrated a scheme to defraud customers” while inflating the price of Celsius’s token, CEL, as he dumped his own holdings.

He was arrested in New York City, SDNY spokesperson Nicholas Biase confirmed. Those transactions lined “his own pockets to the tune of $42 million,” U.S. Attorney Damian Williams said.

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Former Celsius CEO Alex Mashinsky has been arrested on federal securities fraud charges, @CNBC reports, as the bankrupt crypto exchange agreed to pay a $4.7 billion settlement with government regulators. https://t.co/yBUcWGEn9J

— NBC News (@NBCNews) July 13, 2023