Celsius Founder Alex Mashinsky Sentenced to 12 Yrs

[Chawla Solutions]

In a landmark decision on May 8, 2025, Alex Mashinsky, the founder and former CEO of Celsius Network, was sentenced to 12 years in federal prison for securities and commodities fraud. This sentencing follows his guilty plea in December 2024, where he admitted to deceiving customers about the safety of their investments and manipulating the value of Celsius's native token, CEL, for personal gain.

Celsius Network, once a prominent crypto lending platform managing over $25 billion in assets, collapsed in 2022 amid a broader market downturn. The company's bankruptcy revealed a $1.19 billion deficit, leaving thousands of investors unable to access their funds.

During the sentencing, U.S. District Judge John Koeltl emphasized the severity of Mashinsky's actions, highlighting the substantial financial and psychological harm inflicted on investors. Mashinsky was also ordered to forfeit $48 million and several real estate properties acquired through fraudulent means.

This case underscores the importance of transparency and accountability in the cryptocurrency industry, serving as a cautionary tale for both investors and platform operators.

Celsius Founder Alex Mashinsky Sentenced to 12 Years in Prison for Fraud posted by Crypto World Daily