Celsius CEO Sentenced to 12 Years in $5 Billion Crypto Fraud Case

Alex Mashinsky, the former CEO of Celsius Network, has been sentenced to 12 years in prison for his role in a multi-billion dollar cryptocurrency fraud scheme. The sentencing marks a pivotal moment in the ongoing legal reckoning for the crypto industry.

Mashinsky was convicted of orchestrating fraudulent activities that led to Celsius Network’s collapse in mid-2022. The platform, once marketed as a SAFE and transparent lending service, instead misused customer funds and manipulated its native CEL token for corporate and personal gain.

The downfall of Celsius coincided with broader market instability, including the Terra blockchain failure, leaving billions in customer assets inaccessible. Courtroom observers described a somber atmosphere during the sentencing hearing, with Mashinsky showing visible emotion as his fate was decided.