Alex Mashinsky Sentenced to 12 Years for Fraud
Alex Mashinsky, the former CEO of cryptocurrency lender Celsius Network, was sentenced today to 12 years in prison for defrauding customers and manipulating the price of the platform’s native token, CEL. In December 2024, Mashinsky pleaded guilty to one count of commodities fraud and one count of securities fraud, admitting to misleading investors about Celsius’s financial health and secretly selling his CEL holdings for personal gain. As part of his plea agreement, he agreed to forfeit $48 million in proceeds from the fraudulent schemes.
Prosecutors had sought a 20-year sentence, arguing that Mashinsky’s actions caused nearly $7 billion in losses and devastated thousands of customers. Mashinsky’s defense team requested a sentence of just over one year, describing the government’s proposal as a “death-in-prison” punishment for the 59-year-old first-time, nonviolent offender.