Connect with us

News

Celsius founder Alex Mashinsky sentenced to 12 years in prison

Published

on

Celsius founder Alex Mashinsky sentenced to 12 years in prison

Unlock the Editor’s Digest for free

Alex Mashinsky, founder of collapsed crypto lender Celsius Network, was sentenced to 12 years in prison after admitting his role in a scheme to defraud customers and manipulate a token using customer funds.

Mashinsky pleaded guilty to securities fraud and commodities fraud in December. Federal prosecutors in New York said he lured customers with promises of high returns on digital deposits, while misleading them about Celsius’s operations and using their deposits to drive up the price of its own crypto token, CEL.

At its peak, Celsius held $25bn in customer assets. But the bank was buffeted by volatility in crypto markets in 2022, and hundreds of thousands of clients were unable to recover their funds after it halted withdrawals.

Advertisement

District Judge John Koeltl of the Southern District of New York sentenced 59-year-old Mashinsky on Thursday. Mashinsky previously agreed to forfeit more than $48mn, representing his personal proceeds from the sale of CEL tokens before it crashed. His bank accounts were frozen by US authorities after his indictment in 2023.

The sentencing comes as US President Donald Trump has courted the crypto industry, launched his own token and softened the administration’s approach to enforcement and oversight of digital assets. In March he pardoned the company behind the crypto exchange BitMEX — which last year pleaded guilty to violating the Bank Secrecy Act in relation to anti money-laundering controls. In addition, new justice department policies prohibit prosecution of crypto companies for the actions of their users.

“The case for tokenisation and the use of digital assets is strong but it is not a licence to deceive,” Jay Clayton, US attorney for the Southern District of New York, said in a statement. “The rules against fraud still apply, and the SDNY will hold those who flout them accountable for their crimes.” 

Prosecutors had asked for a 20-year prison term, saying in a filing last month that Mashinsky was “a fraudster of epic proportions” and that “a severe sentence is warranted”. 

Mashinsky told a court in December that “what I did was wrong and I want to do what I can to make it right” and said he accepted full responsibility for his actions. 

Advertisement

In a court filing last week, Mashinsky said the sentence should be no more than 366 days. He accused the government of making a “venom-laced submission” to the court and said he was a “first time, non-violent offender who pleaded guilty and accepts responsibility”. 

The filing said he was “chastened and humbled” and was “tortured every day by his misdeeds and the pain he caused”. 

Mashinsky was arrested and charged in 2023. His company had filed for bankruptcy the previous year, after a crypto market rout. 

Prosecutors said Mashinsky had presented Celsius as a “modern day bank” but that it had been a “risky investment fund”, and that Celsius had used some customers’ money to manipulate the market for its CEL token, allowing it to sell its own holdings above their market value. 

Advertisement

News

Maps: 3.8-Magnitude Earthquake Strikes Southern California

Published

on

Maps: 3.8-Magnitude Earthquake Strikes Southern California

Note: Map shows the area with a shake intensity of 3 or greater, which U.S.G.S. defines as “weak,” though the earthquake may be felt outside the areas shown.  All times on the map are Pacific time. The New York Times

A minor, 3.8-magnitude earthquake struck in Southern California on Monday, according to the United States Geological Survey.

The temblor happened at 12:09 p.m. Pacific time about 15 miles south of Bakersfield, Calif., data from the agency shows.

As seismologists review available data, they may revise the earthquake’s reported magnitude. Additional information collected about the earthquake may also prompt U.S.G.S. scientists to update the shake-severity map.

Aftershocks in the region

An aftershock is usually a smaller earthquake that follows a larger one in the same general area. Aftershocks are typically minor adjustments along the portion of a fault that slipped at the time of the initial earthquake.

Advertisement

Quakes and aftershocks within 100 miles

Aftershocks can occur days, weeks or even years after the first earthquake. These events can be of equal or larger magnitude to the initial earthquake, and they can continue to affect already damaged locations.

When quakes and aftershocks occurred

Advertisement

Source: United States Geological Survey | Notes: Shaking categories are based on the Modified Mercalli Intensity scale. When aftershock data is available, the corresponding maps and charts include earthquakes within 100 miles and seven days of the initial quake. All times above are Pacific time. Shake data is as of Monday, May 19 at 3:14 p.m. Eastern. Aftershocks data is as of Monday, May 19 at 4:24 p.m. Eastern.

Maps: Daylight (urban areas); MapLibre (map rendering); Natural Earth (roads, labels, terrain); Protomaps (map tiles)

Continue Reading

News

Trump says Russia and Ukraine to ‘immediately’ begin talks on ending war

Published

on

Trump says Russia and Ukraine to ‘immediately’ begin talks on ending war

Unlock the White House Watch newsletter for free

Donald Trump said on Monday that Russia and Ukraine would begin peace negotiations “immediately”, even though in separate comments Vladimir Putin did not spell out any substantive change in the Kremlin’s stance.

After a two hour call between the US and Russian presidents, Trump posted that “Russia and Ukraine will immediately start negotiations toward a Ceasefire and, more importantly, an END to the War”.

In comments that indicated that Washington may be stepping back from any role as a broker between the warring parties, Trump said the Vatican would be “very interested” in hosting the talks, adding: “Let the process begin!”

Advertisement

Putin’s readout of the conversation with the US president was much more tentative. The Russian president said he was “ready to work” with Kyiv on a memorandum to frame future talks, which could include a possible ceasefire “for a certain amount of time”.

Putin told a state media reporter that the conversation with Trump had been “very candid and therefore very useful”. But he did not announce any major shifts in Russia’s position on the war in Ukraine. 

“We agreed with the US president that Russia will propose and is ready to work with the Ukrainian side on a memorandum about the possible future peace agreement,” Putin said. 

Trump spoke to Ukrainian President Volodymyr Zelenskyy in a separate phone call earlier in the day.

The comments from the Russian president come a week after he refused to attend peace talks with Ukraine in Turkey, leading Trump to say that “nothing is going to happen” until he and the Russian president met.

Advertisement

Trump had indicated his willingness to meet Putin for the talks in Turkey.

On Monday, the Russian president said the memorandum would include “the principles on which a peace agreement would be based, the timing of a possible peace agreement” and “a possible ceasefire for a certain amount of time, if certain agreements are reached”.

However, Putin added that Russia’s main objective was “to eliminate the root causes of this crisis”, in language that signalled his key demands remain unchanged.

Diplomatic efforts to end the conflict have accelerated in recent weeks, with Russia and Ukraine holding direct talks in Istanbul on Friday, their first since the start of the three-year war.

Trump vowed to end the war on day one of his second term but peace has proven elusive, with both sides still far apart.

Advertisement

In European capitals, leaders fear that Trump could cut a deal with Putin that accedes to his maximalist demands and sells out Ukraine’s interests in his haste to end the fighting.

Continue Reading

News

Pope Leo XIV receives White House invitation in meeting with JD Vance

Published

on

Pope Leo XIV receives White House invitation in meeting with JD Vance

Donald Trump has issued a White House invitation to Pope Leo XIV, the Chicago-born pontiff who as Cardinal Robert Prevost previously criticised Trump’s administration.

The invitation came via a letter from the US president and the first lady, Melania Trump, that was delivered to the new pope by the US vice-president, JD Vance, during a meeting at the Vatican on Monday morning.

A video of the start of the meeting shared by the Vatican also showed Vance and his wife giving the pontiff a Chicago Bears jersey with Leo’s name on it.

“As you can probably imagine, the US people are extremely excited about you,” said Vance, who converted to Catholicism in 2019.

In return, Leo gave Vance a bronze sculpture with words in Italian meaning “peace is a fragile flower”.

Advertisement

The pope spoke to Vance privately before they were joined by the US secretary of state, Marco Rubio. The Vatican did not reveal what was discussed.

Before being elected pope earlier this month, Prevost criticised Trump’s administration in several posts on his X account, mainly targeting the government over its hardline policies on immigration.

In February he also shared on X an opinion article published in the National Catholic Reporter titled “JD Vance is wrong: Jesus doesn’t ask us to rank our love for others,” after comments that Vance, who converted to Catholicism in 2019, made in an interview on Fox News.

After meeting Leo, Vance spoke with officials from the Vatican’s secretary of state. Those talks were “cordial”, the Vatican said, adding that there was “an exchange of views on some current international issues, calling for respect for humanitarian law and international law in areas of conflict and for a negotiated solution between the parties involved”.

The meetings at the Vatican took place hours before Trump was due to speak by phone with the Russian president, Vladimir Putin, in an effort to end the war in Ukraine.

Advertisement
skip past newsletter promotion
Advertisement
Pope Leo XIV calls for peace in Ukraine, Gaza and Myanmar at inaugural mass – video

Vance, Rubio and their wives were in Rome to attend a mass on Sunday marking the official start of Leo’s papacy.

The Vatican has not confirmed or denied whether the previous social media posts were authentic, although the X account has been deleted. Trump and Vance also clashed with the late Pope Francis over immigration.

Christopher White, the Vatican correspondent for the National Catholic Reporter and author of the forthcoming book Pope Leo XIV: Inside the Conclave and the Dawn of a New Papacy, said: “Vance certainly knows where the pope stands on the Trump administration’s position on migration, and so I think it was probably important for both sides to use the meeting today as a reset [in relations].

“But they’re obviously worlds apart on migration, and so today was really more about Ukraine and finding a solution. Before becoming pope, Leo was much more direct than Francis ever was because he characterised the war as an imperialistic aggression on the part of Russia.”

White said that while Trump would seek to capitalise on Leo’s papacy, it was unlikely the pontiff would make visiting the US a priority. “He will be quite shrewd,” White added. “I think it’s fair to say that we can expect him to visit Peru, his adopted country, before he visits his homeland.”

Advertisement
Continue Reading
Advertisement

Trending