Celsius Founder Alex Mashinsky Sentenced to 12 Years in Prison for Fraud

Mashinsky pled blameworthy to securities and commodities fraud charges past December.

May 8, 2025, 7:42 p.m.

NEW YORK, NY — Alex Mashinsky, the laminitis and erstwhile CEO of bankrupt crypto lending level Celsius Network, was sentenced to 12 years successful situation connected Thursday for fraud.

Judge John Koeltl of the Southern District of New York (SDNY) handed down the sentence, saying the 12 years — composed of a 120-month condemnation to beryllium served concurrently with a abstracted 144-month condemnation for the 2 charges Mashinsky pled blameworthy to — divided the quality betwixt the defence and prosecution's sentencing memos.

Before Celsius’ illness successful 2022, Mashinsky repeatedly lied to investors astir the information of their deposits. He falsely claimed that Celsius had regulatory approval, helium insisted that the level did not marque uncollateralized loans when, successful fact, it did, and helium lied astir selling his CEL tokens portion manipulating the terms for his ain fiscal gain. Mashinsky’s mediocre enactment and self-dealing drove Celsius into bankruptcy, leaving a gaping $1.2 cardinal spread — which prosecutors said is much similar $7 cardinal astatine today’s prices — in the company’s equilibrium sheet.

Mashinsky was arrested successful July 2023 connected a seven-count indictment, but yet reached a plea woody with prosecutors that saw him plead blameworthy to 1 number each of securities and commodities fraud past December. As portion of his plea deal, prosecutors agreed to a maximum condemnation of 30 years successful prison, but suggested a 20-year condemnation successful their sentencing memorandum filed with the tribunal past month.

“Mashinsky’s crimes were not the merchandise of negligence, naivete, oregon atrocious luck,” prosecutors wrote. “They were the effect of deliberate, calculated decisions to lie, deceive and bargain successful pursuit of idiosyncratic fortune.”

Cheyenne Ligon