US EditionCelsius CEO sentenced to 12 Years for fraud, market manipulation
- On May 8, 2025, Alexander Mashinsky, founder and former CEO of Celsius Network, received a 12-year prison term in Manhattan following his guilty plea to fraud charges.
- His sentencing followed a guilty plea in December 2024 to securities and commodities fraud after prosecutors accused him of misleading customers and inflating Celsius' token value between 2018 and 2022.
- Celsius, founded in 2017 and once dubbed the crypto industry's bank, filed for bankruptcy in 2022 with a $1.19 billion deficit after risky bets drained customer funds totaling around $20 billion.
- Prosecutors described Mashinsky as a predator who drew over $45 million personally while causing billions in losses to thousands of customers who relied on false promises of safety and high yields.
- The sentencing includes a period of supervised probation alongside a forfeiture amounting to $48.4 million, highlighting continued initiatives to combat cryptocurrency fraud amid widespread industry failures in 2022 and ongoing challenges in recovering customer funds.
146 Articles
146 Articles
Crypto Boss 'Made Millions While Customers Lost Billions'
Celsius Network founder Alexander Mashinsky was sentenced Thursday to 12 years in prison for defrauding customers out of millions of dollars in a crypto lending scheme that collapsed in 2022 . US District Judge John G. Koeltl described the crimes as "extremely serious," noting that Mashinsky, 59, personally gained over $45...
Founder of Crypto Platform Celsius Sentenced to 12 Years in Jail for Fraud
The founder and former CEO of bankrupt cryptocurrency lender Celsius Network has been sentenced to 12 years in prison on fraud charges, the Department of Justice (DOJ) said on May 8. Alexander Mashinsky, 59, of New York, was sentenced by U.S. District Judge John G. Koeltl on May 8 after pleading guilty in December 2024 to commodities fraud and securities fraud. His sentence includes three years of supervised release and a $50,000 fine. Mashinsky…
Celsius founder Alex Mashinsky sentenced to 12 years for crypto fraud, ordered to pay $48M - Tech Startups
Five months after pleading guilty to multi-billion-dollar fraud, Celsius founder Alex Mashinsky was sentenced Thursday to 12 years in prison for defrauding investors. The Ukraine-born Mashinsky was first arrested in 2023 following a federal investigation into the collapse of his […] The post Celsius founder Alex Mashinsky sentenced to 12 years for crypto fraud, ordered to pay $48M first appeared on Tech Startups.
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