![Mashinsky, identified in October 2023, [associated with unspecified events or actions].](/en/img/20250511073531_image-description-beach-sunset-palm-trees-clear-sky-tropical.jpeg)
Ex-Crypto Heavyweight Alex Mashinsky Gets 12 Years for Fraud
Ex-Leader of Crypto-Currencies' Platform Celsius Faces 12-Year Imprisonment - Cryptocurrency platform Celsius' former leader receives a 12-year prison sentence.
In a big blow for the cryptocurrency industry, Alex Mashinsky, the ex-CEO of Celsius, a once-popular digital asset platform, was handed a 12-year prison sentence. Mashinsky's fall from grace began when Celsius, boasting over a million customers and $25 billion in investments at its peak in late 2021, ran into trouble with the plunge of digital currencies in the spring of 2022. As more customers began to withdraw their funds, the platform halted all withdrawals and filed for bankruptcy protection in July 2022.
Mashinsky, aged 50, was arrested in the summer of 2023, and his fall was further accelerated when he pleaded guilty in the case against him in December of the following year. His guilty plea secured him a lighter sentence but was still subject to a 20-year sentence sought by prosecutors. The charges against Mashinsky involved seven counts of securities fraud, wire fraud, and conspiracy.
The root of Mashinsky's downfall lay in his schemes to deceive Celsius customers by misrepresenting investment risks and manipulating the price of Celsius's token, CEL. Prosecutors charged Mashinsky with misleading hundreds of thousands of investors by promoting Celsius as a secure alternative to traditional banking while concealing its financial instability. Additionally, he engaged in manipulative trading practices that inflated the value of the CEL token, allowing him to sell his personal holdings at inflated prices, resulting in a personal profit of $42 million.
U.S. District Judge John Koeltl in Manhattan sentenced Mashinsky on May 8, 2025. Despite the lighter sentence, Mashinsky still faces bankruptcy-related civil litigation and other ongoing legal challenges related to Celsius's collapse and bankruptcy.
[1] "Alex Mashinsky, Ex-Celsius Executive, Sentenced to 12 Years in Prison for Cryptocurrency Fraud" Accessed on May 8, 2025.
- The former CEO of Celsius, Alex Mashinsky, was convicted of securities fraud, wire fraud, and conspiracy related to cryptocurrency, resulting in a 12-year prison sentence.
- Mashinsky, a key figure in the cryptocurrency industry, was the ex-chief of the popular digital asset platform, Celsius.
- In a significant industry event, the sentencing occurred in Manhattan in May 2025, following Mashinsky's guilty plea in 2024, which secured a lighter sentence despite prosecutors seeking a 20-year term.
- The fraud involved Alex Mashinsky misrepresenting investment risks and manipulating the price of Celsius's token, CEL, which led to a personal profit of approximately $42 million.
- The collapse of Celsius, once valued at $25 billion, halted in the spring of 2022, causing a stir in the fintech and finance general-news sectors, as well as in the crime-and-justice realm.
