Former Celsius CEO Alex Mashinsky Sentenced to 12 Years for Fraud

Alex Mashinsky, the former CEO of Celsius Network, has been sentenced to 12 years in prison for defrauding customers of the crypto lending platform. The sentencing, delivered by US District Judge John Koeltl in Manhattan, follows Mashinsky’s guilty plea to charges of fraud and market manipulation nearly five months ago.

Prosecutors had pushed for a 20-year term, citing Mashinsky’s lack of remorse and the significant financial harm inflicted on Celsius users. Federal authorities estimate Mashinsky personally profited $42 million from the scheme, which involved misleading investors about risks and manipulating the price of Celsius’ native token, CEL.

The case underscores the regulatory scrutiny facing crypto executives who misrepresent platform stability. Celsius’ collapse in 2022 marked one of the most spectacular failures in the sector, erasing billions in customer funds during the crypto winter.