T4K3.news

Alex Mashinsky sentenced to 12 years in prison

Former CEO of Celsius Network convicted of securities fraud will serve 12 years for misleading investors.

May 8, 2025 at 11:49 PM

Alex Mashinsky of cryptocurrency firm Celsius Network sentenced to 12 years

CEO of Celsius Network receives 12-year prison term for security fraud.

Alex Mashinsky sentenced to 12 years for Celsius fraud

Alex Mashinsky, the former CEO of Celsius Network, was sentenced on Thursday to 12 years in prison after pleading guilty to securities and commodities fraud in December. The sentence was delivered by US District Judge John Koeltl in Manhattan and marks one of the longest for a case resulting from the 2022 cryptocurrency market collapse. Prosecutors highlighted that Mashinsky misled customers about the safety of Celsius and inflated the value of its token, Cel. They had requested a 20-year sentence, citing the extensive harm caused to numerous investors. Mashinsky expressed remorse, requesting a one-year sentence instead. The sentence includes three years of supervised release and a forfeiture of $48.4 million.

Key Takeaways

✔️

Mashinsky received a 12-year prison sentence for fraud.

✔️

Federal prosecutors sought a longer term due to the impact on victims.

✔️

Celsius Network filed for bankruptcy in July 2022 after significant losses.

✔️

Regulatory scrutiny of cryptocurrency firms is increasing.

"The case for tokenization and the use of digital assets is strong but it is not a license to deceive."

This emphasizes the responsibility of cryptocurrency firms to operate honestly.

"Mashinsky sought one year and one day in prison, saying he felt remorse."

This highlights his recognition of wrongdoing and desire to amend his past actions.

The sentencing of Alex Mashinsky sends a strong signal about accountability in the cryptocurrency sector. With regulators increasingly focused on protecting consumers, this case highlights the severe implications of misleading practices in financial markets. The lengthy sentence could discourage similar fraudulent behavior while restoring some confidence among investors who were affected during the 2022 downturn. This case marks a critical moment in the evolving landscape of cryptocurrency regulation.