BTCC
/
BTCC Square
/
Global Cryptocurrency
/
Celsius Founder Faces 20-Year Sentence for $7B Fraud Scheme
Celsius Founder Faces 20-Year Sentence for $7B Fraud Scheme
16
2
Alex Mashinsky, founder of the collapsed Celsius Network, could serve two decades in prison following a DOJ sentencing recommendation. Federal prosecutors allege Mashinsky orchestrated a deliberate fraud that cost investors billions, while misleading clients about the safety of their crypto holdings.
Celsius users lost access to $4.7 billion in assets when the platform froze withdrawals in June 2022. The 97-page sentencing memorandum highlights Mashinsky’s admission to deceiving customers and manipulating the CEL token for personal gain.
Prosecutors are pushing for a severe penalty to set a precedent in the cryptocurrency industry. The May 8 sentencing will mark a pivotal moment for accountability in digital asset markets.
By:
Previous
Mark Carney Elected Prime Minister: What Lies Ahead for Crypto in Canada?
Next
ROVR Network Secures $2.6M Seed Funding for Decentralized 3D Mapping Protocol
