{"id":24362,"date":"2025-04-29T15:20:55","date_gmt":"2025-04-29T15:20:55","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=24362"},"modified":"2025-04-29T15:20:55","modified_gmt":"2025-04-29T15:20:55","slug":"cel-exploded-80-as-us-doj-seeks-20-year-sentence-for-celsius-founder-mashinsky","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=24362","title":{"rendered":"CEL Exploded 80% as US DOJ Seeks 20-Year Sentence for Celsius Founder Mashinsky"},"content":{"rendered":"<div>\n<p><strong>TL;DR<\/strong><\/p>\n<ul>\n<li><span data-preserver-spaces=\"true\">The token saw a sharp price increase after the DOJ called for a severe prison sentence for ex-Celsius CEO Alex Mashinsky, accusing him of years-long deception and financial misconduct.<\/span><\/li>\n<li>His court hearing is scheduled for May 8.<\/li>\n<\/ul>\n<h2><span data-preserver-spaces=\"true\"><a href=\"http:\/\/cryptopotato.com\/wp-content\/uploads\/2025\/04\/CEL_CB.jpg\" data-wpel-link=\"internal\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-394313\" src=\"http:\/\/cryptopotato.com\/wp-content\/uploads\/2025\/04\/CEL_CB.jpg\" alt=\"\" width=\"1201\" height=\"720\" srcset=\"https:\/\/cryptopotato.com\/wp-content\/uploads\/2025\/04\/CEL_CB.jpg 1201w, https:\/\/cryptopotato.com\/wp-content\/uploads\/2025\/04\/CEL_CB-300x180.jpg 300w, https:\/\/cryptopotato.com\/wp-content\/uploads\/2025\/04\/CEL_CB-1024x614.jpg 1024w, https:\/\/cryptopotato.com\/wp-content\/uploads\/2025\/04\/CEL_CB-768x460.jpg 768w, https:\/\/cryptopotato.com\/wp-content\/uploads\/2025\/04\/CEL_CB-50x30.jpg 50w\" sizes=\"auto, (max-width: 1201px) 100vw, 1201px\"><\/a><\/span><\/h2>\n<h2>CEL Reacts to the Request<\/h2>\n<p><span data-preserver-spaces=\"true\">The native token of Celsius Network \u2013 CEL \u2013 has seen a steep decline <\/span><span data-preserver-spaces=\"true\">in the past months, plunging below $0.06 earlier in April and <\/span><span data-preserver-spaces=\"true\">later<\/span><span data-preserver-spaces=\"true\"> rising to around $0.08.<\/span><span data-preserver-spaces=\"true\"> Over the past 24 hours, though, it experienced an 80% price rally, climbing to a 12-week high of almost $0.18. It later lost some ground and <\/span><span data-preserver-spaces=\"true\">currently<\/span><span data-preserver-spaces=\"true\"> trades at roughly $0.14 (per CoinGecko\u2019s data), representing a 70% increase on a daily scale.\u00a0<\/span><\/p>\n<figure id=\"attachment_394310\" aria-describedby=\"caption-attachment-394310\" style=\"width: 564px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/cryptopotato.com\/wp-content\/uploads\/2025\/04\/CEL-Price.png\" data-wpel-link=\"internal\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-394310\" src=\"http:\/\/cryptopotato.com\/wp-content\/uploads\/2025\/04\/CEL-Price.png\" alt=\"CEL Price\" width=\"564\" height=\"400\" srcset=\"https:\/\/cryptopotato.com\/wp-content\/uploads\/2025\/04\/CEL-Price.png 1038w, https:\/\/cryptopotato.com\/wp-content\/uploads\/2025\/04\/CEL-Price-300x213.png 300w, https:\/\/cryptopotato.com\/wp-content\/uploads\/2025\/04\/CEL-Price-1024x726.png 1024w, https:\/\/cryptopotato.com\/wp-content\/uploads\/2025\/04\/CEL-Price-768x545.png 768w, https:\/\/cryptopotato.com\/wp-content\/uploads\/2025\/04\/CEL-Price-50x35.png 50w\" sizes=\"auto, (max-width: 564px) 100vw, 564px\"><\/a><figcaption id=\"caption-attachment-394310\" class=\"wp-caption-text\">CEL Price, Source: CoinGecko<\/figcaption><\/figure>\n<p><span data-preserver-spaces=\"true\">Despite the recent surge, it <\/span><span data-preserver-spaces=\"true\">stands far away<\/span><span data-preserver-spaces=\"true\"> from the all-time high of over $8 observed in June 2021. Back then, the asset\u2019s market capitalization neared $3.5 billion, while as of this writing it is at a mere $5.1 million.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">CEL\u2019s latest upswing follows the US Department of Justice\u2019s (DOJ) <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/storage.courtlistener.com\/recap\/gov.uscourts.nysd.601958\/gov.uscourts.nysd.601958.144.0.pdf\" target=\"_blank\" rel=\"noopener\" data-wpel-link=\"external\"><span data-preserver-spaces=\"true\">request<\/span><\/a><span data-preserver-spaces=\"true\"> for a 20-year prison sentence for former Celsius CEO Alex Mashinsky. The federal executive department of the American government described this as \u201cjust punishment for his years-long campaign of lies and self-dealing that left in its wake billions in losses and thousands of victimized customers.\u201d<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The DOJ further argued that Mashinsky misrepresented <\/span><span data-preserver-spaces=\"true\">how Celsius Network handled<\/span><span data-preserver-spaces=\"true\"> customer deposits, fabricated the entity\u2019s profitability, and risked clients\u2019 funds on uncollateralized loans and secret trades despite promising he wouldn\u2019t.<\/span><\/p>\n<p>The condemnation continued with allegations that the former CEO manipulated the price of CEL by creating artificial demand, allowing him to profit by selling his personal stash of tokens at inflated values.<\/p>\n<blockquote>\n<p><span data-preserver-spaces=\"true\">\u201cMashinsky\u2019s conduct made him rich at the expense of Celsius\u2019s customers. When Celsius collapsed into bankruptcy, it wiped out the savings of ordinary retail investors who entrusted their cryptocurrency to the company based on Mashinsky\u2019s lies,\u201d the document reads.<\/span><\/p>\n<\/blockquote>\n<p><span data-preserver-spaces=\"true\">The sentencing of<\/span><span data-preserver-spaces=\"true\"> Celsius\u2019s former boss is scheduled for May 8. He previously <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/cryptopotato.com\/heres-alex-mashinskys-maximum-prison-sentence-after-pleading-guilty-to-fraud-charges\/\" target=\"_blank\" rel=\"noopener\" data-wpel-link=\"internal\"><span data-preserver-spaces=\"true\">pled<\/span><\/a><span data-preserver-spaces=\"true\"> guilty to two counts of fraud: one count of commodities fraud and one of securities fraud. He admitted to making false claims about Celsius\u2019s \u201cEarn<\/span><span data-preserver-spaces=\"true\">\u201c<\/span><span data-preserver-spaces=\"true\"> program, which misled investors into depositing their Bitcoin on the platform<\/span><span data-preserver-spaces=\"true\"> \u2013 <\/span><span data-preserver-spaces=\"true\">earning him an estimated $48 million profit in the process.<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">The Celsius Saga\u00a0<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Celsius Network was once a prominent crypto lending platform. In the summer of 2022, though, the company <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/cryptopotato.com\/celsius-crashes-50-as-the-platform-halts-withdrawals-due-to-extreme-market-conditions\/\" target=\"_blank\" rel=\"noopener\" data-wpel-link=\"internal\"><span data-preserver-spaces=\"true\">halted<\/span><\/a><span data-preserver-spaces=\"true\"> customer withdrawals, swaps, and transfers due to \u201cextreme market conditions,<\/span><span data-preserver-spaces=\"true\">\u201c<\/span><span data-preserver-spaces=\"true\"> disclosing serious liquidity issues. Shortly after, the entity\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/cryptopotato.com\/cel-dumped-50-after-celsius-filed-for-chapter-11-bankruptcy-protection\/\" target=\"_blank\" rel=\"noopener\" data-wpel-link=\"internal\"><span data-preserver-spaces=\"true\">filed<\/span><\/a><span data-preserver-spaces=\"true\"> for Chapter 11 bankruptcy, revealing a $1.2 billion balance sheet hole and debts of $4.7 billion to users.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The following investigations showed that former CEO Mashinsky supposedly misused customer funds and manipulated the price of CEL. He was <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/cryptopotato.com\/ex-celsius-ceo-alex-mashinsky-arrested-sec-files-against-celsius\/\" target=\"_blank\" rel=\"noopener\" data-wpel-link=\"internal\"><span data-preserver-spaces=\"true\">arrested<\/span><\/a><span data-preserver-spaces=\"true\"> in July 2023 on multiple fraud charges and later <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/cryptopotato.com\/alex-mashinsky-released-on-40-million-bond-denies-fraud-accusations-report\/\" target=\"_blank\" rel=\"noopener\" data-wpel-link=\"internal\"><span data-preserver-spaces=\"true\">released<\/span><\/a><span data-preserver-spaces=\"true\"> on a $40 million bond secured by his Manhattan residence.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">In November 2023, the New York Southern Bankruptcy Court approved a reorganization plan, enabling Celsius to exit bankruptcy. <\/span><span data-preserver-spaces=\"true\">A <\/span><span data-preserver-spaces=\"true\">major<\/span><span data-preserver-spaces=\"true\"> component of the program was the creation of a new Bitcoin mining entity, called Ionic Digital, which is owned by Celsius\u2019s creditors.<\/span><span data-preserver-spaces=\"true\">\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">At the beginning of last year, the company <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/cryptopotato.com\/celsius-network-distributes-3-billion-to-creditors-following-chapter-11-resolution\/\" target=\"_blank\" rel=\"noopener\" data-wpel-link=\"internal\"><span data-preserver-spaces=\"true\">started<\/span><\/a><span data-preserver-spaces=\"true\"> distributing more than $3 billion in cryptocurrency and fiat to affected users as part of its restructuring plan. By the end of August 2024, Celsius had<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/cryptopotato.com\/celsius-begins-creditor-distribution-as-bankruptcy-proceedings-near-end\/\" target=\"_blank\" rel=\"noopener\" data-wpel-link=\"internal\"><span data-preserver-spaces=\"true\"> handed out<\/span><\/a><span data-preserver-spaces=\"true\"> approximately 93% of the approved amount to over 250,000 creditors across 165 countries. <\/span><span data-preserver-spaces=\"true\">A few months later, the company <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/cryptopotato.com\/celsius-to-disburse-another-127m-from-its-legal-recovery-account\/\" target=\"_blank\" rel=\"noopener\" data-wpel-link=\"internal\"><span data-preserver-spaces=\"true\">announced<\/span><\/a><span data-preserver-spaces=\"true\"> plans to distribute an additional $127 million to creditors.\u00a0<\/span><\/p>\n<p>The post <a href=\"https:\/\/cryptopotato.com\/cel-exploded-80-as-us-doj-seeks-20-year-sentence-for-celsius-founder-mashinsky\/\" rel=\"nofollow\">CEL Exploded 80% as US DOJ Seeks 20-Year Sentence for Celsius Founder Mashinsky<\/a> appeared first on <a href=\"https:\/\/cryptopotato.com\/\" rel=\"nofollow\">CryptoPotato<\/a>.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>TL;DR The token saw a sharp price increase after the DOJ called for a severe prison sentence for ex-Celsius CEO Alex Mashinsky, accusing him of years-long deception and financial misconduct. His court hearing is scheduled for May 8. CEL Reacts to the Request The native token of Celsius Network \u2013 CEL \u2013 has seen a [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-24362","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/24362","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=24362"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/24362\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=24362"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=24362"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=24362"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}