Celsius Founder Alex Mashinsky Sentenced to 12 Years in Prison

A US federal judge in the Southern District of New York has sentenced Alex Mashinsky, founder of defunct cryptocurrency lending platform Celsius, to 12 years in prison.

On Thursday, at the end of a lengthy court hearing in Manhattan, judge John Koeltl handed down the sentence.

Beforehand, the court heard from multiple former Celsius customers, who testified to the damage Mashinsky’s actions had wrought on their lives. Mashinsky reportedly shed tears as he delivered his own prepared remarks, asking for forgiveness and issuing an apology.

In July 2023, the US Department of Justice charged Mashinsky with seven counts of fraud. Though he initially denied the charges, Mashinsky later pleaded guilty to two counts: commodities fraud and securities fraud.

As part of the plea deal, Mashinsky admitted to lying to Celsius customers about fundamental aspects of the business—including how their funds would be invested—and ...