In a significant development, Alex Machinski, the mastermind behind the multi-billion dollar fraud known as Celsius, has been arrested. This news carries immense importance not only for this channel, which has been reporting on this case for over a year, but especially for the victims affected by this scam. Here's what some victims had to say about the fraud just a few months ago:
"It was an absolute fraud from the beginning. Many of the businesses that Celsius claimed to support turned out to be completely fraudulent," said one victim. Another added, "From what I've seen, it looks more and more like a textbook Ponzi scheme. Whether it started that way or not, it doesn't matter. Once it reached that point, it became fraud."
According to reports, Celsius was losing money from the start, yet they continued to deceive their customers by claiming everything was fine. They made false promises, such as assuring customers that their funds were secure and even stating that if the company ever went bankrupt, all funds would be returned. These claims were made by Alex Machinski himself, the CEO of Celsius.
Now, the truth has come to light, revealing the extent of the fraud. Alex Machinski, along with other individuals involved in Celsius, is facing serious charges. The Department of Justice (DOJ), Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), and Federal Trade Commission (FTC) have all filed indictments against Machinski. The fines imposed on Celsius amount to a staggering $4.7 billion, and Machinski himself faces seven criminal charges, including securities fraud, wire fraud, and market manipulation. The maximum sentence for these charges could be as high as 115 years, but it is expected that the actual sentence will be lower.
Considering Machinski's age of 57, there is a possibility that he may spend the rest of his life in prison. It is worth noting that he is not the only one facing charges; Roni Cohen Pavon, the Chief Revenue Officer at Celsius, is also among the individuals implicated in this case. Their actions involved the secret use of customer deposits to buy their own token, manipulating its price and benefiting themselves financially.
Celsius deceived their customers repeatedly. They lied about being the primary buyers and sellers of their token, falsely claimed profitability while bleeding money, and provided unrealistic returns to attract more deposits. The company was built on false promises, and when the scheme collapsed, those responsible had already secured their funds, leaving customers in the lurch.
While this news may not come as a surprise to those who have been following this channel, it's essential to acknowledge that Dirty Bubble Media, another investigative source, had been raising concerns about Celsius' fraudulent activities even before others were aware of their insolvency.
James Block from Dirty Bubble Media expressed his early suspicions about Celsius, primarily based on Alex Machinski's history of lying and exaggerating his past successes. This indictment serves as validation for Block and confirms what they had suspected for a long time.
The charges and indictments against Alex Machinski and his co-conspirators are a significant step towards justice for the victims. This outcome brings relief to many who have suffered losses due to this fraudulent operation. It is crucial to hold such individuals accountable for their outright crimes, with the hope of deterring future scams and ensuring a safer environment for investors.
In light of these developments, it is fitting to add Alex Machinski to the Wall of Shame. This is a symbolic gesture to name and shame individuals who appear on this show and subsequently face charges. It serves as a reminder that scammers will be held accountable, and their actions will not go unnoticed.
As the legal process unfolds, it is imperative to remember that banks are not always trustworthy, and cautiousness is crucial when navigating the cryptocurrency space. The victims deserve justice, and this arrest marks a step in the right direction.