CEL dips 10% as court schedules May 8 sentencing for ex-Celsius CEO Mashinsky
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The former Celsius CEO, Alex Mashinsky, faces a sombre reality as the US court confirmed his May 8 sentencing in the latest filing.
United States authorities accused Alex Mashinsky of various crimes, including wire fraud, commodities fraud, and manipulating the native CEL’s price in July 2023.
Meanwhile, he admitted price manipulation and commodities fraud charges in December 2024, facing up to 2 decades in prison.
Mashinsky’s legal woes
Mashinsky’s case is among the high-profile cases that followed FTX’s debacle.
US regulators have fought to hold cryptocurrency bosses accountable.
FTX ex-CEO Sam Bankman-Fried is serving 25 years in prison, while Terraform Labs’ Do Kwon denies fraud charges.
The court set Kwon’s trial for early 2026.
Meanwhile, prosecutors believe Mashinsky misled investors knowingly and exaggerated yields despite underlying financial instability.
The lawmakers initially set his sentencing for April 8, but Mashinsky’s attorneys requested additional time to submit more defensive evidence.
Mashinsky’s sentencing may influence digital assets regulation and prevent similar actions from cryptocurrency executives.
Meanwhile, investor sentiments remain fragile, with many Celsius supporters frustrated over the project’s unpredictable future.
With the official sentencing date set, enthusiasts are watching the impact on native CEL.
The altcoin plummeted following the court’s declaration.
CEL dips on sentencing news
CEL has struggled since fraud allegations emerged in 2022, which led to Celsius’ insolvency.
The alt incentivized user activity on Celsius’ platform and has reacted to developments associated with the bankrupt entity.
It saw a sharp 10% decline after the latest court announcement.
The swift decline demonstrates investors’ worry over the sentencing impact on CEL’s future performance.
CEL trades at $0.07697 after retracing from the daily peak of $0.08543 – a 9.88% dip.
While the alt is still available on some DEXs, it has lacked utility since the platform filed for insolvency in 2022.
That has left CEL a non-functional asset, with its performance tied to legal undertakings.
The altcoin lacks possible rebound catalysts, and with its former CEO awaiting sentencing, the struggle might continue.
While some players might capitalize on near-term volatility, long-term trust in CEL is deteriorating.
Meanwhile, Celsius’ latest news didn’t impact the broad crypto market.
Bitcoin holds above $90K as it targets the $100K mark.
All eyes will remain on May 8 as the community watches whether Mashinsky receives a prolonged jail term.
Meanwhile, his saga demonstrates the benefits of transparency and accountability as the crypto industry matures.
However, CEL’s future remains uncertain as the altcoin lacks utility.
The post CEL dips 10% as court schedules May 8 sentencing for ex-Celsius CEO Mashinsky appeared first on Invezz
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