Former Celsius CEO Alex Mashinsky Sentenced to 12 Years for Crypto Fraud

Alex Mashinsky, founder of the collapsed cryptocurrency lender Celsius Network, has been sentenced to 12 years in prison for his role in a multi-billion-dollar fraud scheme. The sentence was handed down by Judge John Koeltl of the Southern District of New York, who described Mashinsky’s crimes as "extremely serious."

Prosecutors rejected Mashinsky’s plea for leniency, despite his clean prior record and military service. The disgraced CEO had sought a one-year sentence, but the court imposed concurrent terms of 120 and 144 months for the charges to which he pleaded guilty.

The sentencing marks a significant moment in cryptocurrency regulation, demonstrating the legal consequences for misconduct in the digital asset space. The case underscores growing regulatory scrutiny of crypto lending platforms and their executives.