Gold fanatic Peter Schiff compares Alex Mashinsky to Bernie Madoff, says the government acted too late for Celsius clients

Famous gold and financial commentators Peter Schiff has compared Beleaguered Celsius network founder Alex Mashinsky to Ponzi's deadly schemer Bernie Madoff. A federal court has released Mashinsky a 12-year prison for suffering investors through the Beleaguered Crypto lending platform.

Bitcoin's critic Schiff shared a message on the social media X platform late Thursday after the former founder of Celsius, who said “he knew Mashinsky was a fraud once he met him in a Kitco debate.”

“His fraud was obvious that I compared him to Bernie Madoff. The government did not act until after its ponzi scheme“

Peter Schiff: Bitcoin has no harvest

The video shared by Schiff shows a heated exchange between two men during a live-stream debate hosted by Kitco News. In the footage, Mashinsky claimed that Bitcoin pays dividends through the Celsius network with a 6.2% harvest. Schiff asked the founder how such a return was possible without risks.

Celsius's founder Alex Mashinsky has only been punished for 12 years in prison. I know this guy was a fraud once I met him in a Kitco debate. His fraud was obvious that I compared him to Bernie Madoff. The government did not act until the end of his Ponzi scheme. pic.twitter.com/fqlbxwxmde

– Peter Schiff (@Peterschiff) May 8, 2025

“How do you get a harvest in bitcoin?“Schiff pressed. “You need to take a huge risk. Bitcoin itself does not form any harvest. “

Mashinsky told The Gold Advocate that customers enabled Celsius “Unbank themselves,” And that the yield came from lending to Bitcoin. “This is an amazing opportunity for people to take on their own, right? Take advantage of this market“ He continued.

Schiff was clearly not proven, warning viewers at that time, “Do you know who also has a sense of humor? Bernie Madoff also had an amazing opportunity.Carrying

Schiff compares Mashinsky to Ponzi-Scheme Bernie Madoff

According to the US Department of Justice Public notes, Bernard “Bernie” Madoff, who died in prison in 2021, ran Ponzi's largest method in US history. When a former NASDAQ chairman, Madoff has confirmed thousands of investors from approximately $ 65 billion.

Madoff was arrested in December 2008 during the global backdown, when he did not cover $ 7 billion in the requested retreat. He later sought a sin at the 11 federal felony and received a 150-year prison. He died in 2021 at the age of 82.

The US DOJ confirmed in late December 2024 that the Madoff victim's funds provided the tenth and final spanking of payments, worth more than $ 131 million. In all, nearly $ 4.3 billion was distributed to nearly 41,000 victims in 127 countries, paying nearly 94% of their verified losses.

“The final payout twist represents the end of a decade of work that identifies thousands of victims worldwide and unsuccessful layers of complex financial transactions“ The department said.

Most victims of Bernie Madoff's Ponzi scheme are not rich institutions or elite investors. According to the Madoff Victim Fund (MVF), most are sunny individuals, with average losses that walk around $ 250,000 per account.

Mashinsky punished 12 years

Number reported Through Cryptopolitan on May 8, US district Judge John Koeltl gave Mashinsky a 12-year prison term. The 59-year-olds have been convicted of security fraud and fraud of goods after investors are misleading the safety and stability of the now-defunct Celsius.

The judge also said he raised the value of Celsius' proprietary cel token while allegedly enriching himself with more than $ 48 million in personal benefits.

Federal prosecutors pushed at least a 20-year sentence, asserting that Mashinsky's deception caused billions of dollars to losses and affect thousands of investors.

Mashinsky had Question the court for a sentence for more than one year only because he should “Remorseful” and promised to make changes to his family and former clients.

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