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Celsius Founder Alex Mashinsky Sentenced to 12 Years for Crypto Fraud

Mashinsky misled investors, manipulated token prices, and caused billions in losses before Celsius' collapse in 2022.

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FILE - Alexander Mashinsky, founder and former chief executive of the failed cryptocurrency lending platform Celsius Network, leaves Manhattan federal court, July 13, 2023, in New York. (AP Photo/Lawrence Neumeister, File)
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Overview

  • Alex Mashinsky, former CEO of Celsius Network, pled guilty to securities and commodities fraud in December 2024 and was sentenced to 12 years in prison on May 8, 2025.
  • Federal prosecutors accused Mashinsky of deceiving customers about Celsius' safety, profitability, and regulatory compliance while inflating the value of its CEL token for personal gain.
  • Mashinsky personally profited over $48 million from the fraudulent scheme, while Celsius customers collectively lost billions of dollars.
  • Celsius froze $4.7 billion in customer assets in June 2022 and filed for bankruptcy the following month, marking one of the largest collapses in the crypto industry.
  • In addition to his prison term, Mashinsky was ordered to forfeit $48.4 million and pay fines, while bankruptcy proceedings continue to recover and distribute remaining customer funds.