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Celsius Network

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crime1 year ago

Celsius Founder Alex Mashinsky Pleads Guilty to Fraud, Faces 30-Year Sentence

Alex Mashinsky, founder of Celsius Network, has pleaded guilty to two counts of fraud related to misleading customers and manipulating the price of the company's token, CEL. This plea is part of a broader crackdown on crypto executives following the 2022 market slump that led to several company collapses, including Celsius's bankruptcy. Mashinsky admitted to providing false information about regulatory approvals and selling his CEL holdings without disclosure. He faces a maximum sentence of 30 years as part of his plea deal.

via Al Jazeera English|
#alex-mashinsky#bankruptcy#celsius-network
cryptocurrency1 year ago

Celsius Founder Alex Mashinsky to Plead Guilty to Fraud

Alex Mashinsky, founder of the bankrupt cryptocurrency lender Celsius Network, plans to plead guilty to two counts of fraud related to commodities and market manipulation of the company's token, Cel. Initially indicted on seven counts, Mashinsky's plea comes after a series of crypto industry collapses in 2022, including Celsius's bankruptcy. The company, which filed for Chapter 11 in July 2022, was among the first to fall as crypto prices plummeted. Mashinsky's former colleague, Roni Cohen-Pavon, has already pleaded guilty and is cooperating with prosecutors.

via The Guardian|
#alex-mashinsky#bankruptcy#celsius-network
cryptocurrency2 years ago

SEC Raises Concerns Over Coinbase's Role in Celsius Bankruptcy Plan

The U.S. Securities and Exchange Commission (SEC) has objected to Celsius Network's reorganization plan, citing its ongoing lawsuit with Coinbase as a concern. The SEC filed a limited objection and reservation of rights, stating that a distribution services agreement between Celsius and Coinbase may require Coinbase to provide services related to the commission's civil suit against the exchange. Celsius has been revising its restructuring plan since March, while Coinbase faces an SEC lawsuit over allegedly offering unregistered securities. The next hearing in the bankruptcy case is scheduled for October 5.

via Cointelegraph|
#celsius-network#coinbase#cryptocurrency
cryptocurrency2 years ago

Celsius Crypto Lender Exec Pleads Guilty, Will Assist US Probe

Roni Cohen-Pavon, the former chief revenue officer of cryptocurrency lender Celsius Network, has pleaded guilty to charges of manipulating the price of the exchange's crypto token Cel. He has agreed to cooperate with prosecutors' investigations and testify in court if called upon. Cohen-Pavon's guilty plea comes after he and Celsius Network's founder, Alex Mashinsky, were charged with market manipulation and wire fraud. Mashinsky pleaded not guilty and was released on bond. The collapse of Celsius Network, along with other cryptocurrency bankruptcies, occurred as crypto prices fell and customers withdrew their funds. Cohen-Pavon's sentencing is scheduled for December 11, 2024.

via Reuters|
#celsius-network#cooperation-with-us-probe#cryptocurrency
business2 years ago

Celsius Network Seeks Customer Input on Bankruptcy Plan and User-Owned Company

Crypto lender Celsius Network has received permission from a U.S. bankruptcy judge to seek creditor approval for its bankruptcy plan, which aims to exit Chapter 11 as a new entity owned by its creditors. The plan would return some crypto deposits to retail customers and hand control of remaining business lines to the Fahrenheit Group. Celsius estimates that most customers will receive a 67% recovery through a combination of liquid crypto assets, equity shares in the new company, and proceeds from post-bankruptcy litigation against company founder Alex Mashinsky. The reorganized company intends to pursue litigation against Mashinsky, who is facing criminal charges and a civil lawsuit for allegedly misleading customers. Celsius creditors have until September 20 to submit votes on the proposal.

via AOL|
#bankruptcy#business#celsius-network
cryptocurrency2 years ago

Celsius Founder to Face New York Fraud Lawsuit Amid Bankruptcy

Alex Mashinsky, the founder of bankrupt cryptocurrency lender Celsius Network, has been ordered by a Manhattan state court judge to face a civil fraud lawsuit filed by New York Attorney General Letitia James. The lawsuit alleges that Mashinsky defrauded investors by misrepresenting Celsius as a safe alternative to banks while concealing its risks and investment losses. The judge ruled that the attorney general's claims have merit and that some claims can be pursued under the Martin Act, a state securities law. Mashinsky is also facing criminal fraud charges brought by the U.S. Department of Justice and civil lawsuits from the SEC, CFTC, and FTC. Celsius Network, which offered high interest rates and easy loan access, had a $1.19 billion balance sheet deficit when it filed for bankruptcy in July 2022.

via Reuters|
#alex-mashinsky#celsius-network#cryptocurrency
cryptocurrency2 years ago

"Celsius CEO Arrested, XRP Ruling Boosts Altcoins"

Ripple scores a partial victory in court as a judge rules that XRP is not a security in the SEC's case against the company. XRP's price surges and becomes the fourth-largest cryptocurrency by market capitalization. Celsius Network faces a $4.7 billion fine from the FTC and its CEO is arrested on criminal fraud charges. Binance reportedly lays off over 1,000 employees. Europe's first spot Bitcoin ETF is set to debut later this year after a year-long delay.

via Cointelegraph|
#binance#celsius-network#cryptocurrency
cryptocurrency2 years ago

Celsius Network Founder Denies Fraud Charges in Court

Alex Mashinsky, the founder of Celsius Network, has pleaded not guilty to fraud charges, including securities fraud, commodities fraud, and wire fraud. Mashinsky is accused of misleading customers and artificially inflating the value of his company's proprietary crypto token. Several federal regulatory agencies have also sued Mashinsky and Celsius in connection with the case. Celsius Network filed for bankruptcy in July 2022 after customers rushed to withdraw deposits as crypto prices fell. The SEC has also sued Mashinsky and Celsius, alleging the sale of unregistered crypto securities and misleading investors about the company's financial state.

via Reuters|
#alex-mashinsky#celsius-network#cryptocurrency
cryptocurrency2 years ago

Celsius Network Granted Approval to Convert Altcoins to BTC and ETH

The United States Bankruptcy Court for the Southern District of New York has approved Celsius Network's plan to convert its altcoins into Bitcoin (BTC) and Ethereum (ETH). The decision allows the troubled crypto lender to sell or convert its cryptocurrency assets, excluding tokens associated with Withhold or Custody accounts, starting from July 1, 2023. The approval comes after discussions with the U.S. Securities and Exchange Commission (SEC). Celsius Network, which faced bankruptcy following the collapse of the Terra ecosystem, has left creditors waiting for a resolution. The recent verdict introduces new possibilities and extends the proceedings, as many crypto companies are converting altcoins into BTC and ETH amid the SEC's crackdown on altcoins classified as securities.

via Cointelegraph|
#altcoins#bankruptcy#bitcoin
cryptocurrency2 years ago

Gemini and Coinbase join Celsius auction as bidders.

Two consortiums, including Gemini and Coinbase, will bid for the assets of bankrupt crypto lender Celsius Network in an auction scheduled for April 25 in New York. The first bidder, NovaWulf Digital Management, has proposed a direct cash contribution of $45 million to $55 million and the creation of a new public platform wholly owned by Celsius creditors. The second group bidding for Celsius assets is the Blockchain Recovery Investment Committee, backed by Gemini, VanEck, Global X Digital, and Plutus Lending. The Fahrenheit consortium, backed by Arrington Capital, also proposes the creation of a new company to grow the assets and make stakeholders whole.

via Cointelegraph|
#auction#bankruptcy#celsius-network
cryptocurrency2 years ago

Celsius faces legal action and tokenization plans after withdrawal of staked Ethereum.

Celsius Network, a bankrupt crypto lender, is reportedly considering legal action against crypto blogger and creditor Tiffany Fong for leaking internal information. Fong has been actively reporting on the bankruptcy case and sharing leaked internal information, which she claims was given to her by former Celsius employees. While a concrete legal action hasn’t been formulated yet, Celsius’ legal counsel specifically looked into the leaked information Fong reported on via her social media accounts. Fong alleges that Celsius is “using customer funds in an attempt to sue a creditor” over something that she asserts isn’t a legal issue.

via Cointelegraph|
#bankruptcy#celsius-network#cryptocurrency