Founder of failed crypto lending platform Celsius Network arrested on fraud charges

By LARRY NEUMEISTER
Associated Press

NEW YORK (AP) — The founder and former CEO of the failed cryptocurrency lending platform Celsius Network has been arrested on federal fraud charges alleging that he schemed to defraud customers by misleading them about key aspects of the business. Alexander Mashinsky is charged in an indictment unsealed Thursday in Manhattan federal court with securities, commodities and wire fraud. He is also charged with illegally manipulating the price of Celsius’s proprietary crypto token while secretly selling his own tokens at inflated prices. Mashinsky’s attorney says Mashinsky denies the allegations and will vigorously defend himself in court against the baseless charges. Celsius filed for bankruptcy last year.