Alex Mashinsky, the co-founder of defunct crypto lender platform Celsius Network, was sentenced to a 12-year jail term on May 8. This sentence follows a series of legal proceedings that followed his guilty plea last December over his firm’s collapse. Specifically, Alex Mashinky was sentenced for misappropriating customers’ funds and manipulating the CEL token.
Alex Mashinsky Sentence: Another Precedence Set
It is worth noting that the Celsius Network Founder pled guilty to one count of committing commodities fraud and another count of committing securities fraud. The lending platform collapsed in 2022 and filed for bankruptcy shortly after the Terra Luna crash in May 2022.
The fall from that Terra collapse has affected many other entities, including crypto exchange FTX. As reported earlier by CoinGape, the DOJ recommended a 20-year sentence for the crypto pioneer. The 12-year sentence marks a considerable leniency for Alex Mashinky.
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Asset Manager Canary Capital has filed an S-1 registration statement with the US Securities and Exchange Commission (SEC) to launch an exchange-traded fund (ETF) tied to Axelar (AXL).
This marks the first-ever filing for AXL, the native cryptocurrency that powers the Axelar Network, setting the stage for the token’s institutional adoption.
Canary Capital Files for AXL ETF
The filing, which was submitted on March 5, outlines that the fund’s net asset value (NAV) will be calculated based on the price of AXL. However, specifics regarding the exchange where the ETF will be listed, its ticker symbol, and the custodian remain unspecified.
The proposed ETF builds on Canary Capital’s earlier efforts to bring Axelar to institutional investors. On February 19, the firm launched the Canary AXL Trust. The trust was Canary Capital’s first step into structured AXL offerings, and the ETF filing represents an extension of this effort.
“With Axelar driving some of the most advanced interoperability solutions in Web3, we see in AXL a significant opportunity for institutional investors to gain exposure to the technology underpinning next-generation blockchain connectivity,” Canary Capital’s CEO Steven McClurg said.
The news of the filing had an immediate impact on the market. AXL’s price jumped 14.3%, reaching $0.44.
Trading volume also spiked to $35.7 million. This marked a 131.8% increase from the previous day. With a market capitalization of $405.5 million, Axelar currently ranks 174 on CoinGecko.
Crypto ETFs Under Donald Trump: Opportunity or Bubble?
Canary Capital’s filing comes amid a broader surge in cryptocurrency ETF applications in the US, a trend that has accelerated since Donald Trump took office. According to Kaiko Research, more than 45 crypto ETF filings are currently pending SEC approval.
Nonetheless, according to Kaiko Research, market depth, concentration, and trading structure present significant obstacles for non-BTC/ETH ETFs. Many altcoins associated with ETF applications suffer from shallow liquidity, making them more susceptible to price manipulation and volatility.
Additionally, most trading activity for these assets occurs on offshore platforms, creating transparency and regulatory oversight issues. The lack of sufficient USD trading pairs for certain assets further complicates their inclusion in ETFs, as these pairs are essential for accurate ETF valuations. Furthermore, the absence of regulated futures markets for many cryptocurrencies limits available trading strategies.
“All of these factors could limit the demand for more crypto-related ETFs going forward. While approval processes might change, market dynamics still have to catch up,” Kaiko noted.
For now, AXL has been added to a growing list of crypto ETF filings. However, its success—and that of similar ETFs—remains to be seen.
The US Securities and Exchange Commission (SEC) has charged Ramil Palafox, a dual US-Philippine national, with orchestrating a $198 million crypto scam.
From January 2020 to October 2021, Palafox ran a Ponzi-style scheme through his company, PGI Global, defrauding many investors.
SEC Cracks Down on Massive Crypto Scam
According to the press release, the regulator claims that Palafox raised about $198 million from investors globally. He promised them substantial returns from crypto and foreign exchange trading.
“As alleged in our complaint, Palafox attracted investors with the allure of guaranteed profits from sophisticated crypto asset and foreign exchange trading, but instead of trading, Palafox bought himself and his family cars, watches, and homes using millions of dollars of investor funds,” Associate Director of the SEC’s Philadelphia Regional Office Scott Thompson stated.
Furthermore, the company operated with a multi-level marketing (MLM) structure. Palafox attracted investors by claiming expertise in the crypto sector and offering an artificial intelligence (AI)-driven trading platform. Yet, both of these claims provedto be fraudulent.
The scheme eventually collapsed in 2021, resulting in significant financial losses for investors.
“The SEC’s complaint, filed in the US District Court for the Eastern District of Virginia, charges Palafox with violating the anti-fraud and registration provisions of the federal securities laws,” the press release detailed.
The SEC demands that Palafox return ill-gotten gains and pay civil penalties. The regulator has also asked for a permanent injunction to prevent Palafox from engaging in similar activities in the future. Additionally, the US Attorney’s Office has filed criminal charges.
Iranian National Charged for Running Dark Web Marketplace
Meanwhile, in a separate case, a federal jury indicted Iranian national Behrouz Parsarad for founding and operating a dark web marketplace. According to the US Office of Public Affairs, the Nemesis market facilitated the illegal sale of drugs, including fentanyl and other controlled substances. The marketplace was also involved in criminal activities like stealing financial data and distributing malware.
The long-standing legal battle between the US Securities and Exchange Commission (SEC) and Ripple Labs could face another potential delay.
This possibility looms as both parties have yet to refile their motion correctly, with the June 16 deadline quickly approaching.
Could the Ripple SEC Lawsuit Face a Delay?
On May 8, BeInCrypto reported that the SEC and Ripple jointly requested an indicative ruling from Judge Torres to approve a settlement that would reduce the penalty to $50 million and dissolve the injunction placed on Ripple.
On May 15, Judge Analisa Torres rejected the parties’ request. She stated that if jurisdiction were returned to the court, she would deny the motion because it was procedurally improper.
However, as of June 5, 2025, the parties haven’t refiled. This has raised concerns about the next steps in the case. Attorney Fred Rispoli highlighted the absence of a proper refiling in a recent post on X (formerly Twitter).
He emphasized that on June 16, both parties must submit a status update to the United States Court of Appeals for the Second Circuit.
“20 days later, no refile yet by SEC and Ripple in district court, and the June 16 deadline for the status update in the 2nd Circuit looms large,” Rispoli posted.
The June 16 deadline holds significant weight, as it will determine the next steps in the case. Rispoli noted that if nothing is refiled, the Second Circuit will only have the denial of the first motion to work with. This could restart the briefing schedule.
Alternatively, if a motion is pending before Judge Torres at the time of the status update, the Second Circuit will likely extend the process by an additional 60 days.
“The next step? The message by Torres was clear that both parties need to beg for forgiveness. Ripple will say whatever to get it done, but how much public groveling is the SEC willing to do? And how much groveling will be authorized? We have 12 days to find out,” Rispoli added.
“Rumors swirling. Hearing SEC, Ripple & Judge Torres have finally reached an agreement. Word is Ripple came out on top,” a user stated.
The user added that an announcement could come as early as Friday, June 13. However, he cautioned that the news remains unverified. Additionally, the associated parties have not provided any official confirmation.
Meanwhile, amid the uncertainty, XRP’s price has also taken a hit. BeInCrypto data showed that over the past week, the altcoin’s value has seen an 8.8% decline.
