Crypto’s Wild West Era Claims Another Casualty: Celsius Ex-CEO Gets 12 Years Behind Bars

Another crypto cowboy rides into the sunset—handcuffed. Alex Mashinsky, the disgraced former CEO of bankrupt crypto lender Celsius, just got slapped with a 12-year prison sentence for fraud.

Justice finally catches up with crypto’s ’growth at all costs’ culture. The sentence sends a clear message: play fast and loose with customer funds, and the feds will play hardball.

Remember when Celsius promised 18% APY? Turns out those yields came with a side of handcuffs. Maybe next time, Wall Street’s ’disruptors’ will read the fine print before gambling with other people’s money.

In brief

• Alex Mashinsky, former CEO of Celsius, is sentenced to 12 years in prison for fraud and manipulation of the CEL token.
• Despite expectations of clemency under Trump, the US justice system remains firm against crypto offenses.
• This sentence sends a strong message: innovation does not protect fraudsters in the blockchain sector.

Donald Trump and justice: a delicate balance

Alex Mashinsky, the former CEO of Celsius, was found guilty of orchestrating a large-scale misinformation scheme. By promising guaranteed returns, he attracted hundreds of thousands of clients while using their funds to speculate on volatile assets. He also engaged in crypto token manipulation strategies, artificially inflating the price of CEL to his advantage! Hence the 12-year prison sentence.

Since January 2025, Donald TRUMP has made waves with the pardon of Ross Ulbricht, founder of Silk Road, and the commutation of sentences for former BitMEX executives. In this context, the crypto community had hoped for more lenient treatment for Mashinsky.

However, the DOJ led by Jay Clayton did not flinch. A conviction that will serve as a warning to entrepreneurs and promoters in the crypto sector with a single motto: fraud will be severely punished, regardless of the field. The defense even tried to mitigate the sentence:

• No evidence of personal enrichment;
• Honorable military service;
• No prior record.

They even requested only a one-year sentence. But nothing changed the outcome. The judge took into account the seriousness of the facts: thousands of savers deceived, attracted by promises of safety and returns.

A clear signal for the crypto ecosystem

This sentence contrasts with the more permissive image that Donald Trump seems to present towards crypto players. Despite calls for leniency, including from Changpeng Zhao, the US justice system sends a clear message: innovation does not justify fraud.

While Roger Ver and Sam Bankman-Fried also hope for a presidential intervention, Mashinsky’s conviction reminds that in the crypto world, some offenses remain unforgivable, even in the Trump era.

The sentencing of Alex Mashinsky to 12 years in prison thus confirms that the US justice system does not yield to the crypto aura nor political pressures. Even under Donald Trump, financial crimes related to cryptocurrency remain severely punished. A clear warning to all players in the blockchain sector.

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