Founder of Crypto Platform Celsius Sentenced to 12 Years in Jail for Fraud
Alexander Mashinsky, 59, of New York, was sentenced by U.S. District Judge John G. Koeltl on May 8 after pleading guilty in December 2024 to commodities fraud and securities fraud.
His sentence includes three years of supervised release and a $50,000 fine. Mashinsky was also ordered to forfeit $48.39 million, according to the DOJ's
Prosecutors stated that Mashinsky had misled customers about Celsius's proprietary crypto token CEL and artificially inflated its value by buying it on the open market. This manipulation allowed him to profit about $48 million from his own sales of CEL.
U.S. Attorney Jay Clayton said that Mashinsky targeted retail investors with promises that their investments were safe on Celsius, while in reality, he used those funds for risky bets.
Mashinsky made tens of millions selling his own CEL tokens 'while his customers lost billions,' Clayton added.
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'America's investors deserve better,' Clayton said in a statement. 'The case for tokenization and the use of digital assets is strong, but it is not a license to deceive.'
Lawyers for Mashinsky were not immediately available to comment.
Celsius was a global cryptocurrency platform that offered investment returns for asset deposits, secured loans, and custody services. The company filed for Chapter 11 bankruptcy in July 2022.
At the sentencing hearing, Assistant U.S. Attorney Allison Nichols cast Mashinsky as a financial predator, saying that he had deceived customers from the start by exaggerating Celsius's ability to build momentum.
'He preyed on hope,' Nichols told the judge, noting that the customers were not going to be made financially whole regardless of the money that could be recovered through bankruptcy proceedings.
The defense blamed the collapse of Celsius on a 'cataclysmic downturn' of cryptocurrency markets in May and June of 2022 and said in court papers that Mashinsky's actions were 'never predatory, exploitative, or venal.'
According to the DOJ statement, Mashinsky allegedly deceived customers about Celsius's financial position and secretly withdrew $8 million worth of his own non-CEL assets from the company before it collapsed.
Hundreds of thousands of Celsius users were left without access to about $4.7 billion in digital assets when the company finally announced that it was halting customer withdrawals in June 2022.
Cameron Crewes, who served on a victims' committee, has called for a 'harsh' sentence. Crewes said during the sentencing hearing that hundreds of victims have died before they could see justice served.
The Associated Press contributed to this report.
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The teleconference begins at 9:00 a.m. Eastern Time today, Thursday, July 10, 2025. Institutional investors and analysts interested in participating in the call are invited to dial (877) 407-3982 approximately ten minutes prior to the start of the call. The conference call will also be webcast live on the Events & Presentations page at: A telephone replay of this call will be available at 1:00 p.m. Eastern Time on July 10, 2025, until 11:59 p.m. Eastern Time on July 24, 2025, and can be accessed by dialing (844) 512-2921 and entering replay pin number 13753990. A replay of the webcast will remain available on the website for one year. Non-GAAP Financial Measures The Company reports and discusses its operating results using financial measures consistent with accounting principles generally accepted in the United States of America ('GAAP'). To supplement its presentation, the Company discloses certain financial measures that may be considered non-GAAP such as Adjusted Operating Income, Adjusted Operating Margin, Adjusted Effective Tax Rate, Adjusted Income, Adjusted Diluted Earnings per Share ('EPS'), EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, and Net Leverage Ratio, which are presented in accompanying tables to this press release along with a reconciliation of these financial measures to their corresponding GAAP-based financial measures presented in the Company's condensed consolidated statements of income and cash flows. For additional information, see Note 1 to the accompanying tables to this press release. About Helen of Troy Limited Helen of Troy Limited (NASDAQ: HELE) is a leading global consumer products company offering creative products and solutions for its customers through a diversified portfolio of well-recognized and widely-trusted brands, including OXO, Hydro Flask, Osprey, Vicks, Braun, Honeywell, PUR, Hot Tools, Drybar, Curlsmith, Revlon, and Olive & June. All trademarks herein belong to Helen of Troy Limited (or its subsidiaries) and/or are used under license from their respective licensors. For more information about Helen of Troy, please visit Forward-Looking Statements Certain written and oral statements made by the Company and subsidiaries of the Company may constitute 'forward-looking statements' as defined under the Private Securities Litigation Reform Act of 1995. This includes statements made in this press release, in other filings with the SEC, and in certain other oral and written presentations. Generally, the words 'anticipates', 'assumes', 'believes', 'expects', 'plans', 'may', 'will', 'might', 'would', 'should', 'seeks', 'estimates', 'project', 'predict', 'potential', 'currently', 'continue', 'intends', 'outlook', 'forecasts', 'targets', 'reflects', 'could', and other similar words identify forward-looking statements. All statements that address operating results, events or developments that the Company expects or anticipates may occur in the future, including statements related to sales, expenses, including cost reduction measures, earnings per share results, and statements expressing general expectations about future operating results, are forward-looking statements and are based upon its current expectations and various assumptions. The Company currently believes there is a reasonable basis for these expectations and assumptions, but there can be no assurance that the Company will realize these expectations or that these assumptions will prove correct. Forward-looking statements are only as of the date they are made and are subject to risks, many of which are beyond the Company's control, that could cause them to differ materially from actual results. Accordingly, the Company cautions readers not to place undue reliance on forward-looking statements. The forward-looking statements contained in this press release should be read in conjunction with, and are subject to and qualified by, the risks described in the Company's Form 10-K for the year ended February 28, 2025, and in the Company's other filings with the SEC. Investors are urged to refer to the risk factors referred to above for a description of these risks. 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The Company undertakes no obligation to publicly update or revise any forward-looking statements as a result of new information, future events or otherwise. Reconciliation of Non-GAAP Financial Measures – GAAP Operating (Loss) Income and Operating Margin to Adjusted Operating Income and Adjusted Operating Margin (Non-GAAP) (1) (Unaudited) (in thousands) Three Months Ended May 31, 2025 Home & Outdoor Beauty & Wellness (5) Total Operating loss, as reported (GAAP) $ (213,793 ) (120.1 )% $ (193,245 ) (99.8 )% $ (407,038 ) (109.5 )% Asset impairment charges (6) 219,095 123.1 % 195,290 100.8 % 414,385 111.5 % CEO succession costs (8) 1,742 1.0 % 1,742 0.9 % 3,484 0.9 % Subtotal 7,044 4.0 % 3,787 2.0 % 10,831 2.9 % Amortization of intangible assets 1,782 1.0 % 3,207 1.7 % 4,989 1.3 % Non-cash share-based compensation 34 — % 262 0.1 % 296 0.1 % Adjusted operating income (non-GAAP) $ 8,860 5.0 % $ 7,256 3.7 % $ 16,116 4.3 % Expand Three Months Ended May 31, 2024 Home & Outdoor Beauty & Wellness Total Operating income, as reported (GAAP) $ 15,850 8.0 % $ 14,913 6.8 % $ 30,763 7.4 % Restructuring charges 440 0.2 % 1,395 0.6 % 1,835 0.4 % Subtotal 16,290 8.2 % 16,308 7.5 % 32,598 7.8 % Amortization of intangible assets 1,765 0.9 % 2,755 1.3 % 4,520 1.1 % Non-cash share-based compensation 3,013 1.5 % 2,820 1.3 % 5,833 1.4 % Adjusted operating income (non-GAAP) $ 21,068 10.6 % $ 21,883 10.0 % $ 42,951 10.3 % Expand Reconciliation of Non-GAAP Financial Measures – GAAP Operating (Loss) Income to EBITDA (Earnings (Loss) Before Interest, Taxes, Depreciation and Amortization), Adjusted EBITDA and Adjusted EBITDA Margin (Non-GAAP) (1) (Unaudited) (in thousands) Three Months Ended May 31, 2025 Home & Outdoor Beauty & Wellness (5) Total Operating loss, as reported (GAAP) $ (213,793 ) (120.1 )% $ (193,245 ) (99.8 )% $ (407,038 ) (109.5 )% Depreciation and amortization 6,559 3.7 % 7,525 3.9 % 14,084 3.8 % Non-operating income, net — — % 308 0.2 % 308 0.1 % EBITDA (non-GAAP) (207,234 ) (116.4 )% (185,412 ) (95.7 )% (392,646 ) (105.6 )% Add: Asset impairment charges 219,095 123.1 % 195,290 100.8 % 414,385 111.5 % CEO succession costs 1,742 1.0 % 1,742 0.9 % 3,484 0.9 % Non-cash share-based compensation 34 — % 262 0.1 % 296 0.1 % Adjusted EBITDA (non-GAAP) $ 13,637 7.7 % $ 11,882 6.1 % $ 25,519 6.9 % Expand Three Months Ended May 31, 2024 Home & Outdoor Beauty & Wellness Total Operating income, as reported (GAAP) $ 15,850 8.0 % $ 14,913 6.8 % $ 30,763 7.4 % Depreciation and amortization 6,647 3.3 % 7,189 3.3 % 13,836 3.3 % Non-operating income, net — — % 100 — % 100 — % EBITDA (non-GAAP) 22,497 11.3 % 22,202 10.2 % 44,699 10.7 % Add: Restructuring charges 440 0.2 % 1,395 0.6 % 1,835 0.4 % Non-cash share-based compensation 3,013 1.5 % 2,820 1.3 % 5,833 1.4 % Adjusted EBITDA (non-GAAP) $ 25,950 13.1 % $ 26,417 12.1 % $ 52,367 12.6 % Expand Reconciliation of Non-GAAP Financial Measures – GAAP Net (Loss) Income to EBITDA (Earnings (Loss) Before Interest, Taxes, Depreciation and Amortization), Adjusted EBITDA and Adjusted EBITDA Margin (Non-GAAP) (1) (Unaudited) (in thousands) Three Months Ended May 31, 2025 2024 Net (loss) income, as reported (GAAP) $ (450,718 ) (121.3 )% $ 6,204 1.5 % Interest expense 13,808 3.7 % 12,543 3.0 % Income tax expense 30,180 8.1 % 12,116 2.9 % Depreciation and amortization 14,084 3.8 % 13,836 3.3 % EBITDA (non-GAAP) (392,646 ) (105.6 )% 44,699 10.7 % Add: Asset impairment charges 414,385 111.5 % — — % CEO succession costs 3,484 0.9 % — — % Restructuring charges — — % 1,835 0.4 % Non-cash share-based compensation 296 0.1 % 5,833 1.4 % Adjusted EBITDA (non-GAAP) $ 25,519 6.9 % $ 52,367 12.6 % Expand Quarterly Period Ended Twelve Months Ended May 31, 2025 August November February May Net income (loss), as reported (GAAP) $ 17,014 $ 49,616 $ 50,917 $ (450,718 ) $ (333,171 ) Interest expense 13,216 12,164 13,999 13,808 53,187 Income tax expense (benefit) 4,792 13,536 (62,531 ) 30,180 (14,023 ) Depreciation and amortization 13,792 13,222 14,198 14,084 55,296 EBITDA (non-GAAP) 48,814 88,538 16,583 (392,646 ) (238,711 ) Add: Acquisition-related expenses — — 3,035 — 3,035 Asset impairment charges — — 51,455 414,385 465,840 CEO succession costs — — — 3,484 3,484 Restructuring charges 1,526 3,518 7,943 — 12,987 Non-cash share-based compensation 5,487 4,730 5,326 296 15,839 Adjusted EBITDA (non-GAAP) $ 55,827 $ 96,786 $ 84,342 $ 25,519 $ 262,474 Expand Three Months Ended May 31, 2024 Income Diluted Earnings Per Share Before Tax Tax Net of Tax Before Tax Tax Net of Tax As reported (GAAP) $ 18,320 $ 12,116 $ 6,204 $ 0.78 $ 0.51 $ 0.26 Barbados tax reform (7) — (6,045 ) 6,045 — (0.26 ) 0.26 Restructuring charges 1,835 165 1,670 0.08 0.01 0.07 Subtotal 20,155 6,236 13,919 0.85 0.26 0.59 Amortization of intangible assets 4,520 661 3,859 0.19 0.03 0.16 Non-cash share-based compensation 5,833 264 5,569 0.25 0.01 0.24 Adjusted (non-GAAP) $ 30,508 $ 7,161 $ 23,347 $ 1.29 $ 0.30 $ 0.99 Expand Selected Consolidated Balance Sheet and Cash Flow Information (Unaudited) (in thousands) May 31, 2025 2024 Balance Sheet: Cash and cash equivalents $ 22,669 $ 16,148 Receivables, net 314,814 328,097 Inventory 484,127 444,749 Total assets, current 855,415 831,563 Total assets 2,651,963 2,820,951 Total liabilities, current 504,514 427,675 Total long-term liabilities 919,763 843,776 Total debt 871,013 748,377 Stockholders' equity 1,227,686 1,549,500 Expand Three Months Ended May 31, 2025 2024 Cash Flow: Depreciation and amortization $ 14,084 $ 13,836 Net cash provided by operating activities 58,338 25,320 Capital and intangible asset expenditures 13,362 9,142 Net debt (repayments) proceeds (45,044 ) 82,387 Payments for repurchases of common stock 1,331 103,035 Expand Reconciliation of Non-GAAP Financial Measures – Second Quarter Fiscal 2026 Outlook for GAAP Diluted Earnings Per Share to Adjusted Diluted Earnings Per Share (Non-GAAP) and GAAP Effective Tax Rate to Adjusted Effective Tax Rate (Non-GAAP) (1) (13) (Unaudited) Diluted earnings per share, as reported (GAAP) $ 0.56 - $ 0.68 (287.3 )% - (84.9 )% Amortization of intangible assets 0.19 - 0.19 Non-cash share-based compensation 0.31 - 0.28 Income tax effect of adjustments (0.61 ) - (0.55 ) 318.2 % - 113.8 % Adjusted diluted earnings per share (non-GAAP) $ 0.45 - $ 0.60 30.9 % - 28.9 % Expand HELEN OF TROY LIMITED AND SUBSIDIARIES Notes to Press Release (1) This press release contains non-GAAP financial measures. Adjusted Operating Income, Adjusted Operating Margin, Adjusted Effective Tax Rate, Adjusted Income, Adjusted Diluted Earnings Per Share, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, and Net Leverage Ratio ('Non-GAAP Financial Measures') that are discussed in the accompanying press release or in the preceding tables may be considered non-GAAP financial measures as defined by SEC Regulation G, Rule 100. Accordingly, the Company is providing the preceding tables that reconcile these measures to their corresponding GAAP-based financial measures. The Company believes that these Non-GAAP Financial Measures provide useful information to management and investors regarding financial and business trends relating to its financial condition and results of operations. The Company believes that these Non-GAAP Financial Measures, in combination with the Company's financial results calculated in accordance with GAAP, provide investors with additional perspective regarding the impact of certain charges and benefits on applicable income, margin and earnings per share measures. The Company also believes that these Non-GAAP Financial Measures reflect the operating performance of its business and facilitate a more direct comparison of the Company's performance with its competitors. The material limitation associated with the use of the Non-GAAP Financial Measures is that the Non-GAAP Financial Measures do not reflect the full economic impact of the Company's activities. These Non-GAAP Financial Measures are not prepared in accordance with GAAP, are not an alternative to GAAP financial measures, and may be calculated differently than non-GAAP financial measures disclosed by other companies. Accordingly, undue reliance should not be placed on non-GAAP financial measures. (2) Free cash flow represents net cash provided by operating activities less capital and intangible asset expenditures. (3) Net leverage ratio is calculated as (a) total borrowings under the Company's credit agreement plus outstanding letters of credit, net of unrestricted cash and cash equivalents, including readily marketable obligations issued, guaranteed or insured by the U.S. with maturities of two years or less, at the end of the current period, divided by (b) Adjusted EBITDA per the Company's credit agreement (calculated as EBITDA plus non-cash charges and certain allowed addbacks, less certain non-cash income, plus the pro forma effect of acquisitions and certain pro forma run-rate cost savings for acquisitions and dispositions, as applicable for the trailing twelve months ended as of the current period). (4) Organic business refers to net sales revenue associated with product lines or brands after the first twelve months from the date the product line or brand is acquired, excluding the impact that foreign currency remeasurement had on reported net sales revenue. Net sales revenue from internally developed brands or product lines is considered Organic business activity. (5) The three months ended May 31, 2025 includes a full quarter of operating results from Olive & June, acquired on December 16, 2024. Olive & June sales are reported in Acquisition. (6) Non-cash asset impairment charges were recognized, during the first quarter of fiscal 2026, to reduce goodwill and other intangible assets, which impacted both the Beauty & Wellness and Home & Outdoor segments. (7) Represents a discrete tax charge to revalue existing deferred tax liabilities as a result of Barbados enacting a domestic corporate income tax rate of 9%, effective beginning with the Company's fiscal year 2025 ('Barbados tax reform'). (8) Represents costs incurred in connection with the departure of the Company's former CEO primarily related to severance and recruitment costs ('CEO succession costs'). (9) Represents income tax expense from the recognition of a valuation allowance on a deferred tax asset related to the Company's intangible asset reorganization in fiscal 2025 ("intangible asset reorganization"). (10) Accounts receivable turnover uses 12 month trailing net sales revenue. The current and four prior quarters' ending balances of trade accounts receivable are used for the purposes of computing the average balance component as required by the particular measure. (11) Domestic net sales revenue includes net sales revenue from the U.S. and Canada. (12) See reconciliation of Adjusted EBITDA to the most directly comparable GAAP-based financial measure (net income) in the accompanying tables to this press release. (13) Adjusted diluted EPS second quarter outlook excludes the impact of amortization of intangible assets, non-cash share-based compensation, and the income tax effect of these adjustments, as well as the estimated second quarter income tax impact of the asset impairment charges recognized during the first quarter of fiscal 2026. Expand
Fox News
4 hours ago
- Fox News
MORNING GLORY: When the 'conspiracy' just isn't there
When Jeffrey Epstein took his own life on August 10, 2019, the circumstances were so bizarre that, instantly, conspiracy theories were hatched as to who had had him killed and why, along with how they made it into his cell and disguised the murder as a suicide. Because of that original enormous leap from known fact —Epstein was dead— to the unsubstantiated theory that he was murdered and all that followed from that ridiculous lead of logic, many millions of hours have been wasted in chat rooms and Reddit threads as well as on better-known podcasts. Now all the speculation and theorizing is reduced to ashes and wasted time, and many, many dealers in the conspiracy trade are going to be not only deeply disappointed, but also very likely to lose money. JEFFREY EPSTEIN DIED BY SUICIDE, DID NOT HAVE CLIENT LIST: DOJ MEMOThe internet first made it possible and then made it easy to monetize anger and conspiracy. Individuals with a family, friends or community deficit in their lives could and did find each other in the strangest places online. Bonds were formed. Alliances and friendships developed. And in some sectors, money was being made peddling Epstein theories. Unfortunately, many found themselves in far-off corners of the web where the similarly lonely or disconnected could find companionship, as well as food and drink for their own beliefs. It's a long known and often described phenomenon known as "confirmation bias." "Confirmation bias" is the tendency to interpret new evidence as confirmation of one's existing beliefs or theories. Facts and theories that conflict with dearly held beliefs are dismissed as false, erroneous or incomplete and sometimes even as proof positive of the original bias. This isn't new or novel. If there's a human alive who isn't subject to the mighty pull of confirmation bias, I haven't met him or her. My own vulnerability is that I love seeing conspiracies debunked and rarely are they as thoroughly shattered as the idea that Jeffrey Epstein —a monster for sure and one certain to have been convicted of many heinous crimes in the most humiliating of fashions— kept a list of "clients" for whom he procured minors for intimate and criminal acts. Now the gavel has come down and Attorney General Pam Bondi and FBI Director Kash Patel have made the finding official: There is no "Epstein list." Further, Epstein wasn't murdered. He killed himself. "After a thorough investigation, FBI investigators concluded that Jeffrey Epstein committed suicide in his cell at the Metropolitan Correctional Center in New York City on August 10, 2019. This conclusion is consistent with previous findings," the July 7 memo from the Department of Justice and the FBI states. That's it. There is no list. He took his own life. Period. End of the real story. There are almost certainly many relieved participants in Epstein's depravities who are walking with a lighter step this week than last, but it turns out the creep wasn't so stupid as to make a list and leave it for investigators to find down the road. That Epstein killed himself is also so much easier to believe than the theories adduced for his alleged murder by powerful, even shadowy figures who could not afford the "list" to come to light. It's actually much easier to understand the overwhelming guilt and disgrace driving Epstein to take his own life. Suicide counselors often are heard to tell the unstable that suicide is a permanent solution to a temporary problem, and they need to attack the problem not end the pain. That excellent advice would have very little impact, however, on so thorough a villain as Epstein. There was nothing but endless humiliation ahead of him. Suicide is never moral, but in very rare cases like Epstein's, it does make sense whereas in many cases it doesn't and shocks. Epstein taking his own life was never shocking to me or to most people. But it was a stumbling block to some. Into the rabbit holes they dove. Will the DOJ/FBI "final" finding end the small culture of the Epstein-obsessed and their continued search for new "smoking guns?" Of course not. Expecting a conspiracy-addicted and addled individual to suddenly emerge from the the caverns of the web with a public declaration, or even a private recognition, that they have wasted all that time and effort on a made-up scenario is a lot to ask. Even extremely well-adjusted folks have difficulty cutting loose what are known as "sunk costs." "Sunk costs" are investments of time or money, expenses of real or imagined value, that have already been incurred and cannot be recovered, regardless of future decisions. "Sunk costs" ought to be irrelevant to future decision-making because they are unchangeable —as in "sunk"— but "ought" and "are" live in different universes. An investor riding a stock down, down, down until bankruptcy is made formal is one obvious example of an individual trapped by their old hopes and dreams for that original investment. So too is pining away for an old flame who has most definitely moved on. The list of examples of sunk costs is as long as the number of human beings. But rare is the opportunity to make a clean break with an unhealthy obsession. The findings about Epstein that there are no findings ought to be liberating for many: Time to move on! There really —really!— is nothing to see here. Spread the word if you know anyone afflicted with the malady: It is OK to walk away from the conspiracy. Hugh Hewitt is a Fox News contributor, and host of "The Hugh Hewitt Show," heard weekdays from 3 pm to 6 pm ET on the Salem Radio Network, and simulcast on Salem News Channel. Hugh drives America home on the East Coast and to lunch on the West Coast on over 400 affiliates nationwide, and on all the streaming platforms where SNC can be seen. He is a frequent guest on the Fox News Channel's news roundtable hosted by Bret Baier weekdays at 6pm ET. A son of Ohio and a graduate of Harvard College and the University of Michigan Law School, Hewitt has been a Professor of Law at Chapman University's Fowler School of Law since 1996 where he teaches Constitutional Law. Hewitt launched his eponymous radio show from Los Angeles in 1990. Hewitt has frequently appeared on every major national news television network, hosted television shows for PBS and MSNBC, written for every major American paper, has authored a dozen books and moderated a score of Republican candidate debates, most recently the November 2023 Republican presidential debate in Miami and four Republican presidential debates in the 2015-16 cycle. Hewitt focuses his radio show and his column on the Constitution, national security, American politics and the Cleveland Browns and Guardians. Hewitt has interviewed tens of thousands of guests from Democrats Hillary Clinton and John Kerry to Republican Presidents George W. Bush and Donald Trump over his 40 years in broadcast, and this column previews the lead story that will drive his radio/ TV show today.
