Alex Mashinsky, the founder and former CEO of the now-collapsed cryptocurrency lender Celsius Network, was sentenced to a 12-year prison term for securities and commodities fraud on Thursday.
What Happened: The sentencing was delivered by U.S. District Judge John Koeltl in Manhattan, according to a Reuters report. Federal prosecutors charged Mashinsky with deceiving customers about the safety of Celsius and artificially boosting the value of the exchange’s native token, Celsius (CRYPTO: CEL).
The prosecution had pushed for a minimum 20-year prison term, claiming it was a “just punishment” for Mashinsky’s actions that caused thousands of victims and led to billions in losses. They said Mashinsky personally profited more than $48 million from the scheme.
Mashinsky had proposed a sentence of one year and one day, expressing regret and a wish to reconcile with his family and former Celsius customers, the report said. His sentence also includes three years of supervised release and a $48.4 million forfeiture.
His arrest in 2023 followed the collapse of Celsius and a Department of Justice inquiry into the company's downfall. The company applied for bankruptcy protection in 2022.
However, the firm exited bankruptcy in early 2024, beginning a $3 billion repayment to its creditors.
Photo Courtesy: ARTEMENKO VALENTYN on Shutterstock.com
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