Celsius CEO Gets 12 Years in Prison for CEL Token Fraud
On May 8, a New York court sentenced former Celsius CEO Alex Mashinsky to 12 years in prison. In addition to the prison term, he is required to pay a $48 million fine and give up some of his real estate, Reuters reports.
In December 2024, Mashinsky pleaded guilty to organizing a fraudulent scheme related to the CEL cryptocurrency. He manipulated the token's quotes, concealed risks, and assured investors that deposits were safe, despite the loans being unsecured. According to the court, the victims' losses exceeded $4.7 billion, and more than 100,000 clients lost access to their funds after the platform collapsed.
Judge John Koeltl said the former executive's actions were "deeply immoral and destructive of confidence in the market." One of the victims, Cameron Crews, noted the cynicism of Mashinsky, who, in his words, "is writing a book about gravity but does not understand the severity of the damage done."
Mashinsky's lawyers insisted on a minimum term of one year, while the prosecutor's office demanded 20 years in prison. Representatives of the creditors even proposed giving the fraudster a life sentence. The final verdict was a compromise, taking into account the admission of guilt and cooperation with the investigation.
Under the agreement, Mashinsky has no right to appeal his sentence. He will begin serving his sentence in September at Otisville State Prison. He will be 72 when he is released in 2037.
