The founder of Celsius Network Alex Mashinsky was finally sentenced to 12 years in prison for cryptographic fraud. Mashinsky avoided a longer 20 -year sentence, despite longer -term calls due to Celsius Network's harmful bankruptcy and his unrepentant behavior.
Alex Mashinsky was sentenced to 12 years in prison for frauding hundreds of thousands of investors. Celsius Network has promised high yields, but wiped out more than $ 7 billion in value.
Mashinsky faces 20 years old In prison on the basis of arguments of deliberate fraud and an unrepentant attitude. The founder of Celsius asked for a one -year sentence for his financial crimes. The final conviction of 12 years includes accusations of fraud on basic products and securities. Mashinsky pleaded guilty in December 2024, leaving the tribunal to determine the last duration of the sentence. At one point, the plea was linked to a potential life imprisonment, capped at 30 years old, Documents to show.
The sentence will be in force from September 12, because Mashinsky asked for a delay to attend the marriage of her daughter, who was granted by Koetl judge At the New York District Court. The penalty will be purged at the federal correctional establishment of Otisville.
The emotions increased during the conviction, while Celsius was aimed at retail investors and destroyed the personal savings of several depositors. Mashinsky himself would have shouted during the final arguments and the conviction.
We are now halfway the condemnation of the founder of Celsius Alex Mashinsky
Here is the whole drama of the interior of the courtroom, including when Mashinsky began to cry while he was talking to the court 🧵pic.twitter.com/8wcwmqggo9
– Zack Guzmán (@zguz) May 8, 2025
Celsius Network stopped withdrawals in June 2022, later reporting an exposure to FTX exchange. On July 13, the company filed a request for protection against the bankruptcy of Chapter 11, ending the procedure in January 2024.
According to statements, Celsius had up to $ 444 million in bankruptcy stock market. Chaos and insolvency procedures led to the extended bear market in 2022-2023, which has erased even more value of investors.
Celsius Network noted red flags just before the first signs of insolvency, although Mashinsky denied it until the last day. Throughout the trial, Mashinsky has always claimed that he had acted in good faith, although the defense has always stressed unrevited affirmationsMinimizing the severity of Celsius fraud.
Celsius took a break from withdrawals from customers the day after this tweet accusing me of being paid to the company
Today, Alex Mashinsky was sentenced to 12 years in prison for fraud pic.twitter.com/pzpx7c2tuc
– Mike Dudas (@mdudas) May 8, 2025
The platform was a first version of a crypto loan protocol, which was centralized and depended on the constant entries to serve high promised interest rates.
The platform fraud Even high -level cryptographic influencers, leading even more cryptography users to root for the maximum possible sentence and possible compensation.
Mashinsky to lose wealth and personal properties
To compensate the depositors of the Celsius network, Mashinsky will lose $ 48 million from its personal funds and nine real estate properties.
Mashinsky's defense admits a loss of $ 590 million, although other estimates show that Celsius owes up to $ 4.7 billion. Unfortunately, the platform does not have the funds to reimburse all creditors and has only distributed $ 127 million in the second phase of its remuneration program. Total losses are estimated up to $ 7 billion, including the lost value of the project native token.
The trial also called 200 personal statements loss of wealth due to involvement with Celsius Network. Prosecutors highlighted the prejudicial effect of erasure of personal life economies, while demanding maximum sentence.
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