Celsius Founder Alex Mashinsky Sentenced to 12 Years in Prison for Crypto Fraud

Alex Mashinsky, the disgraced founder of collapsed crypto lender Celsius Network, received a 12-year prison sentence for defrauding hundreds of thousands of investors. US District Judge John Koeltl delivered the verdict in Manhattan, marking one of the harshest penalties stemming from the 2022 crypto market crash.

Prosecutors had pushed for a 20-year term, labeling Mashinsky’s scheme as deliberate fraud. The 59-year-old executive pleaded guilty to two counts of fraud in December, though authorities criticized his apparent lack of remorse during proceedings.

The case underscores the regulatory reckoning for bad actors in digital assets. While the sentence brings closure to Celsius customers, it also serves as a warning to the industry about the consequences of misleading investors.