Former Celsius CEO Alex Mashinsky has pleaded guilty to two criminal charges, including commodities fraud and a fraudulent scheme to manipulate the price of Celsius’ native token, CEL.

The plea was filed Tuesday, according to Inner City Press reports, and could result in Mashinsky facing a sentence of up to 20 years in prison. For now, he remains free on $40 million bail until his trial. The former CEO reportedly earned $42 million in profits from the CEL token sale.

Mashinsky, 59, was arrested in 2023 after being accused by prosecutors of defrauding customers and misleading them about the profitability of Celsius. The company, which allowed users to earn interest and take out loans on their crypto assets, filed for bankruptcy in 2022.

Celsius’ collapse led to significant financial losses for its customers, and the company was ultimately dissolved earlier this year. Part of his funds were used to create a new Bitcoin mining company called Ionic Digital.

The charges against Mashinsky stem from claims that he made false public statements regarding Celsius’ business and financial condition in order to trick retail clients into depositing their crypto assets. The United States Securities and Exchange Commission (SEC) also filed a lawsuit in July 2023, alleging that Celsius, under Mashinsky’s leadership, raised billions of dollars through fraudulent and unregistered crypto sales, had lied to investors about the company’s financial situation and manipulated the price of the CEL token.

Mashinsky’s legal team argued the charges were inconsistent, saying it was unclear whether Celsius’ Earn program, allegedly treated as collateral by prosecutors, was linked to commodities such as Bitcoin filed by investors. They also argued that Mashinsky was not adequately warned that his alleged manipulation of CEL prices could result in criminal charges.

Judge Koeltl also reserved judgment on Mashinsky’s motion to exclude the details of Celsius’ bankruptcy from the trial, saying he would address the issue during pretrial motions or during the trial itself.

Additionally, Mashinsky’s lawyers requested permission to question potential jurors about their knowledge of FTX, citing the now-defunct exchange’s “toxic” reputation in the crypto industry and its potential impact on the impartiality of the jury.

Machinsky resigned as CEO of Celsius in September 2022. In July 2023, he was indicted on seven counts, including securities fraud, wire fraud and conspiracy to commit fraud related to his activities on the platform.

Mashinsky’s lawyers sought to preserve testimony from six key witnesses, including Celsius’ former chief revenue officer Roni Cohen-Pavon, who recently pleaded guilty to charges in the same case.

The witnesses, many of whom reside outside the United States, are expected to play a crucial role in Mashinsky’s defense, claiming they ignored his instructions regarding CEL token sales.

In addition to the criminal case, Mashinsky also faces civil charges from the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).