Alex Mashinsky Sentenced to 12 Years for Celsius Crypto Fraud

Alex Mashinsky, founder and former CEO of Celsius Network, has been sentenced to 12 years in prison for defrauding customers of the now-defunct crypto lending platform. The sentencing, delivered by U.S. District Judge John Koeltl in Manhattan federal court on May 8, 2025, follows Mashinsky’s guilty plea in December 2024 to securities and commodities fraud charges.

Celsius Network, launched in 2017, positioned itself as a secure alternative to traditional banks, allowing users to earn interest on deposited cryptocurrencies. At its peak, the platform managed over $20 billion in assets. The company’s collapse in June 2022—triggered by a broader crypto market downturn—left customers unable to withdraw funds, culminating in a bankruptcy filing that revealed a $1 billion shortfall.

Mashinsky’s downfall underscores the risks of unregulated crypto ventures. His fraudulent claims about Celsius’s stability misled investors, contributing to one of the sector’s most spectacular failures.