Celsius Founder Alex Mashinsky Will Plead Guilty to Fraud Charges: Reuters

Alex Mashinsky, the founder and former CEO of collapsed crypto lender Celsius, will plead guilty to U.S. federal fraud charges, Reuters reported Tuesday.

Mashinsky reportedly said in a court hearing that he would plead guilty to two of the seven fraud counts levied against him: commodities fraud and conspiring to manipulate the price of the firm’s CEL token.

The disgraced crypto founder’s trial was set to begin on January 28, 2025, after a motion from his lawyers to dismiss two charges was denied by U.S. District Judge John Koeltl in November.

Celsius filed for Chapter 11 bankruptcy in July 2022, one month after halting all customer withdrawals. In July 2023, Mashinsky was hit with charges over an alleged $40 million in fraudulent gains at the expense of Celsius customers.

Editor’s note: This story is breaking and will be expanded with additional details.