The former CEO of Silicius Alex Machinski is sentenced to 12 years in prison for fraud.

Alex Machinski, CEO of the former Kelceos network, was sentenced to 12 years in prison in the Federal Prison on Thursday.

The decision comes after adopting guilty in December to organize a fraudulent plan that misleads investors and manipulated the market value of Celius’s original code for Celsius, CEL.

Details of the ruling

US Public Prosecutor Office, South New York, Declare Machinski prison sentence on May 8.

“The founder and former CEO of Celsius Network LLC and its entity was sentenced to 12 years imprisonment to make fraud in goods and securities in Celsius.”

The American boycott judge, John J. Quilll ruling in the 14A Court Hall of the Southern Manhattan Province Court. This comes nearly five months after the approval of guilt in Crypto, in which he confessed to exaggerating the stability of Celsius financial and promising returns for investors.

“Alexander Machinski targeted retail investors with promises that he would keep their” digital assets “safer than the bank,” said American lawyer Jay Clayton. “In fact, I use these assets to put risky beta and link its own pockets.”

During the court session, Mashinsky admitted its role in strengthening the price of artificially distinctive symbols while selling quietly tens of millions of dollars from his property. The accused also agreed to lose the returns of his illegal activities.

The general prosecutors have paid for 20 years, on the pretext that the former two former had remained “unreasonable” and have proven the widespread damage to the encryption lender agents. The federal authorities also said that Machinsky made a profit of $ 48 million in the plan.

Ultimately, the 59 -year -old accepted the instructions for the issuance of sentences of up to 30 years and waived his right to appeal any prison period within this range as part of the guilt acknowledgment deal.

Billion dollar fraud case

Machinski’s legal problems began in 2023 when he was arrested on charges of securities, goods and wire fraud. His arrest coincided with CELSIUS Agreement on a $ 4.7 billion settlement with the Federal Trade Committee (FTC), one of the largest committee in the agency’s history. However, the deal still depends on the company that restores customer assets.

In September 2023, Ronnie Cohen Pavon, former Celsius’s former chief revenue official, admitted guilty on the same issue and agreed to cooperate with the authorities. This provided basic visions in the company’s internal operations.

His testimony contributed to the broader case that was raised against Celsius and Mashinsky by the Securities and Stock Exchange Committee (SEC) and the Future Trading Committee of Commodities (CFTC) for the billions of dollars in fraud.

Although the previous executive authority initially denied these accusations, its approval of guilt and the issuance of the ruling on Thursday concluded a case that revealed a serious misconduct in one of the most prominent encrypted lending companies.