Celsius Network Founder Sentenced To 12 Years For Crypto Fraud

Alexander Mashinsky, founder and former CEO of cryptocurrency lender Celsius Network, has been sentenced to 12 years in prison for defrauding customers out of millions in what prosecutors described as a predatory scheme, the Associated Press’ (AP) Larry Neumeister reported.

Mashinsky personally pocketed more than $45 million before the platform collapsed in 2022. I Photo: Piaras Ó Mídheach/Web Summit via Sportsfile Flickr

US District Judge John G. Koeltl said Mashinsky’s “extremely serious” crimes caused severe psychological and financial harm to thousands of investors, many of whom entrusted Celsius with their life savings.

Mashinsky personally pocketed more than $45 million before the platform collapsed in 2022, exposing reckless financial strategies involving more than $20 billion in customer funds.

The defense blamed the failure on a broader crypto market crash and denied any intent to exploit investors.