🚨 Alex Mashinsky Sentenced to 12 Years for $7 Billion Celsius Crypto Fraud 🔐

In a landmark ruling delivered in New York, Alex Mashinsky — the founder and former CEO of the now-defunct crypto lending platform Celsius — has been sentenced to 12 years in federal prison for orchestrating a massive fraud scheme involving customer funds.

The court found Mashinsky guilty of misleading users with false promises of safety while concealing the platform’s high-risk trading strategies. Prosecutors revealed that prior to Celsius’s collapse in mid-2022, Mashinsky had not only marketed the platform as a secure place to earn yield on crypto but also withdrew millions for personal use, even as Celsius spiraled toward insolvency.

The total damages linked to the fraud exceed $7 billion, impacting more than 1.8 million users worldwide — many of whom lost their life savings. The judge described the sentencing as a message to the broader crypto industry: transparency and integrity are non-negotiable.

Mashinsky’s legal team has already indicated plans to appeal the decision, claiming the verdict was overly harsh and influenced by public anger toward failed crypto platforms.

The Celsius case now joins the growing list of high-profile legal actions against crypto executives, highlighting the urgent need for regulatory clarity and consumer protections in the space.

As the industry matures, this case serves as a defining moment: those who misuse trust in decentralized finance will face real consequences.

Stay tuned for updates on the appeal and ongoing industry reforms.