Celsius Founder Alex Mashinsky Receives 12-Year Prison Sentence for Fraud
Alex Mashinsky, founder and former CEO of Celsius Network, was sentenced to 12 years in prison for fraud. The sentence includes:
- A 120-month concurrent sentence for two charges pled guilty to
- The decision balanced recommendations from both defense and prosecution
Prior to Celsius' collapse in 2022, Mashinsky misled investors about the safety of their deposits, falsely claimed regulatory approval, denied making uncollateralized loans, and manipulated CEL token prices for personal gain. His actions led to a bankruptcy with a $1.2 billion deficit, estimated at $7 billion today.
Mashinsky was arrested in July 2023 on seven counts but took a plea deal, admitting to one count each of securities and commodities fraud. Prosecutors initially sought a 30-year maximum sentence, later recommending 20 years.
Prosecutors emphasized that Mashinsky's actions were deliberate and calculated, aimed at personal enrichment.