Celsius (CEL) Token Price Surges 70% After Former CEO Alexander Mashinsky Pleads Guilty to Fraud

The saga of Celsius and former CEO Alexander Mashinsky reached its final chapter today with the sentencing hearing. Having previously pleaded guilty to defrauding investors of over $150 million, Mashinsky was sentenced to 15 years in prison and faces an additional five years for money laundering, making a total of 20 years.

The sentence comes after a period of legal battles and scrutiny following the collapse of Celsius in 2022. Mashinsky’s actions, which spanned several years, involved a pattern of deception, manipulation, and shifting financial maneuvers.

According to prosecutors, Mashinsky lied to and misled thousands of investors, juggling different narratives to suit his agenda. He reportedly used investor funds to lavishly pay himself and funnel the remainder through family trusts, from which he tried to keep the funds out of reach of victims and creditors.

The fallout from Celsius’s collapse has been widely discussed, with investors losing an estimated $550 million plus. However, in a bizarre twist of market psychology, the CEL token witnessed an astonishing 70% jump in value shortly after news of Mashinsky’s sentencing broke.

This had many wondering if this was a speculative blip or the beginning of a rebound, considering the token had been hovering around $0.09 for the past few months. After hitting an intraday high of $0.1782, the token settled around $0.15.

What Led to Celsius’s Dramatic Fall?

Celsius was considered a safe bet for crypto investors due to the alluring yields it offered on deposits, along with a model that appeared to provide transparency.

In reality, Mashinsky and his team were misrepresenting the state of company finances, buying back overvalued private tokens with investor deposits and draining cash reserves in the process.

The platform collapsed when those promises became unsustainable and the company’s internal controls ultimately failed. Investors were quickly transitioning from promising crypto platforms to one of the highest-profile collapses and failures in the space.

When the dust settled, Mashinsky was charged with both securities fraud and manipulating the price of the token. Prosecutors argued that Mashinsky had not demonstrated true remorse to the court and even tried to secrete away assets in family trusts in Canada.

Why Did CEL Surge 70% After Mashinsky’s Guilty Plea?

In a ironic turn of events, CEL, Celsius’s native token, saw a massive 70% gain in under 24 hours after the sentencing announcement.

The token had been on a downward trajectory since reaching its all-time high of $8.02 in 2021, but this recent surge was unexpected, especially after Mashinsky’s sentencing.

After a period of decline and stability around $0.09, CEL experienced a swift recovery, rallying 70% in less than 24 hours following the sentencing news.

This unexpected rally caught many by surprise. After all, a guilty plea and looming prison sentence would normally spell doom for a project.

However, some analysts believe the CEL bullish chart might result more from short-term speculative trading than from fundamental strength.

Other market participants believe retail investors are betting on the brand’s revival under new management, or possibly anticipating a future token burn or restructuring.

While this Celsius price surge is notable, it still sits more than 98% below its all-time high.

Chart 1- CEL/USDT Live Price, published on TradingView, April 30th, 2025.

Is This a Trend or a Temporary Spike?

Despite the brief excitement, industry experts caution investors against interpreting the surge as a comeback story. The lack of real utility, unresolved legal matters, and ongoing restructuring challenges leave the future uncertain.

Traders should watch out for CEL price support levels, which could determine whether the token stabilizes or dips further.

Likewise, any breakouts in the CEL bullish chart could be influenced more by sentiment and news cycles than by actual project fundamentals.

The upcoming months may bring greater clarity, especially if Celsius rebrands or restructures post-Mashinsky. For now, the sharp movement appears to be a reflection of the market’s speculative nature rather than a signal of renewed investor confidence.

What Comes Next for Celsius and CEL?

Mashinsky’s sentencing is not only a personal downfall but also a turning point for crypto accountability and regulation. As one of the first high-profile figures in the crypto space to face severe penalties following their financial crime, this case sets a fundamental precedent.

On the opposite side, the Celsius price surge showcases the volatile and unpredictable nature of the crypto market. Some traders see opportunity in the crypto chaos, while others suggest caution due to weak fundamentals and a lack of sustainable momentum.

Whether the CEL price will continue this recent run or drop back into obscurity is dependent on future events, including updates on the regulatory side, any shifts in management, and even investor emotions.

One thing is clear: this chapter of