Alex Mashinsky, Ex-CEO of Cryptocurrency Giant Celsius, Gets a 12-Year Sentence
Convicted Ex-Chef from Crypto Firm Celsius Faces 12-Year Jail Term - Cryptocurrency leader of Celsius, previously in control position, receives 12-year jail sentence.
In the cryptocurrency world's turbulent landscape, the downfall of Celsius was a significant blow. At its zenith in 2021's final quarter, Celsius boasted a userbase surpassing a million, with investments exceeding $25 billion. But when digital currencies took a nosedive in the spring of 2022, Celsius found itself in hot water. Withdrawals piled up as users sought their funds. In mid-June 2022, the platform froze all withdrawals and sought bankruptcy protection a month later, with a total $4.7 billion of customer funds at stake. According to a report from March this year, 93% of that money has been returned to its rightful owners.
The man at the helm during these tumultuous times, Alex Mashinsky, was apprehended in the summer of 2023. He admitted his guilt in connection with the charges against him in December of the previous year, securing a more lenient sentence.
- Key Roles: CEO, Ex-CEO
- Location: USA
- Type of Crime: Fraud
- Court: Manhattan, New York
- Season: Spring
The case against Mashinsky involved securities fraud, wire fraud, and conspiracy. He deceived hundreds of thousands of investors by presenting Celsius as a secure and profitable platform, while hiding its precarious financial situation. By inflating the value of Celsius's token, CEL, Mashinsky sold his personal holdings at inflated prices. Moreover, he engaged in uncollateralized loans and risky market bets, putting customers' funds at peril.
Mashinsky pleaded guilty to two charges related to fraud and market manipulation on December 3, 2024. He was sentenced to 12 years in prison by US District Judge John Koeltl in Manhattan on May 8, 2025, bringing an end to the federal prosecution phase. However, Mashinsky still faces bankruptcy and civil litigation related to Celsius's collapse.
- The former chief of Celsius, Alex Mashinsky, was convicted of securities and wire fraud, as well as conspiracy in a case that occurred in the United States.
- Mashinsky's actions led to the downfall of Celsius, a cryptocurrency platform, in the spring of 2022.
- As the CEO of Celsius, Mashinsky deceived hundreds of thousands of investors by presenting the platform as secure and profitable, while hiding its precarious financial situation.
- Mashinsky's sentence of 12 years in prison was handed down in Manhattan, New York in May 2025.
- Despite the conclusion of the federal prosecution phase, Mashinsky still faces bankruptcy and civil litigation related to Celsius's collapse.
