According to Foresight News, Celsius founder Alex Mashinsky has been sentenced to 12 years in prison for cryptocurrency fraud. The sentencing includes two charges, with terms of 120 months and 144 months to be served concurrently, totaling 144 months. Additionally, Mashinsky has been ordered to forfeit $48 million and multiple properties.
Previously, the U.S. Department of Justice submitted a sentencing memorandum on April 28, recommending a 20-year sentence for Mashinsky due to his fraudulent activities, which resulted in billions of dollars in losses for Celsius customers. Following the platform's suspension of withdrawals on June 12, 2022, users were unable to access approximately $4.7 billion in crypto assets.
Authorities stated that as part of a guilty plea in December 2024, Mashinsky admitted to being the leader of Celsius's criminal activities, which led to losses exceeding $550 million, while he personally gained over $48 million.