12-Year Prison Sentence for the Former CEO of "Celsius": Details
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A 12-year prison sentence was issued for “Alex Mashinsky,” the former founder and CEO of “Celsius,” after he pleaded guilty last December to orchestrating a large-scale fraudulent scheme involving misleading investors and manipulating the market value of the company’s cryptocurrency “CEL.”
The Southern District of the U.S. Attorney's Office in New York announced the sentence on May 8, where “Mashinsky” was convicted of committing fraud related to commodities and securities.
The sentence was issued by U.S. District Judge, “John G. Koeltl,” in federal court in Manhattan, confirming the defendant's involvement in presenting a false picture of his company's financial stability and making promises of unattainable returns.
The prosecution explained that “Mashinsky” exploited the trust of individual investors, claiming that their digital assets would be safer than what banks offer, while he used these assets in risky operations for personal gain.
The court acknowledged his involvement in artificially inflating the value of the CEL cryptocurrency and then secretly selling a large portion of his holdings, which enabled him to achieve profits of about $48 million.
Despite the prosecution's request for a sentence of up to 20 years, he was sentenced to 12 years in prison after “Mashinsky” agreed to waive any right to appeal within the scope of the sentence, as part of his guilty plea deal.
Legal proceedings began in 2023 when “Mashinsky” was arrested on charges including securities and commodities fraud, in addition to wire fraud.
This coincided with “Celsius” agreeing to a $4.7 billion settlement with the Federal Trade Commission, contingent on the return of customer assets.
The collaboration of one of the company's former senior officials, “Roni Cohen-Bafon,” who also admitted his role in the scheme, provided critical insights that contributed to supporting the case.
This sentence represents a critical juncture in one of the most prominent criminal cases in the digital finance sector, highlighting the violations committed within a company that was considered a major player in the cryptocurrency lending space.
