Celsius Founder Sentenced to 12 Years for $48M Crypto Fraud

Alex Mashinsky, the founder of Celsius, has been sentenced to 12 years in prison for his involvement in a significant crypto fraud case. The court imposed two concurrent sentences of 120 months and 144 months, with the latter being the effective sentence. Mashinsky has also agreed to forfeit $48 million and multiple properties as part of his sentencing.

Prior to the collapse of Celsius in 2022, Mashinsky repeatedly misled investors about the safety of their deposits. The prosecution highlighted several instances where Mashinsky made false claims, including asserting that the platform had regulatory approval and that no uncollateralized loans were issued, despite evidence to the contrary. Additionally, Mashinsky was found to have manipulated the price of the CEL token for personal gain, with illegal profits from this activity exceeding $48 million.

Mashinsky's actions, characterized by a dereliction of duty and self-serving behavior, directly contributed to the bankruptcy of Celsius. The company was left with a substantial financial deficit of $1.2 billion, which would be approximately $7 billion at current prices. This sentencing marks a significant development in the ongoing efforts to hold accountable those responsible for fraudulent activities in the cryptocurrency industry.