Celsius was one of several high-profile crypto firms that imploded last year. The company gained popularity paying high interest rates on digital-asset deposits. But following the collapse of the TerraUSD stablecoin and a downturn in the digital-asset markets the company was unable to meet an influx of customer withdrawals.
Former Celsius Network Ltd Chief Executive Officer Alex Mashinsky was accused by US prosecutors of pumping up the price of his firm’s cryptocurrency to entice customers to the platform — all so he could line his pockets to the tune of US$42 million ($55.8 million).
Mashinsky, who was arrested and charged with wire fraud and other crimes, waged a yearslong scheme to mislead customers before Celsius collapsed last year with more than US$1 billion in debt, according to prosecutors. He pleaded not guilty at a hearing Thursday in New York.
