Celsius Founder Alex Mashinsky Sentenced to 12 Years in Prison
Alexander Mashinsky, former CEO of Celsius, received a 12-year prison sentence after pleading guilty to fraud charges. The sentencing occurred in the Southern District of New York, overseen by US District Judge John G. Koeltl.
Celsius Mashinsky Faces Justice
- Mashinsky admitted guilt to commodities fraud and manipulation of the Celsius token, CEL.
- His legal issues began with his arrest in 2023 on multiple fraud counts.
- Celsius announced a $4.7 billion settlement with the FTC, dependent on returning customer assets amid bankruptcy proceedings.
SEC And CFTC Pursue Multi-Billion Dollar Fraud
- Prosecutors claimed Mashinsky misled investors about the safety and profitability of Celsius's platform while liquidating substantial personal holdings.
- Initially denying wrongdoing, Mashinsky's guilty plea concluded this legal matter.
- This case is part of wider regulatory actions against the cryptocurrency sector involving the SEC and CFTC.
- Mashinsky’s situation parallels other prominent crypto figures facing legal challenges, including FTX's Sam Bankman-Fried and Binance’s Changpeng Zhao.
