Celsius Founder Alex Mashinsky Sentenced to 12 Years in Prison for Fraud

BTC $ 101,438.51 + 4.77 % ETH $ 2,122.36 + 17.88 % USDT $ 1.0002 - 0.00 % XRP $ 2.2659 + 6.87 % BNB $ 620.72 + 3.55 % SOL $ 160.39 + 9.55 % USDC $ 1.0001 - 0.01 % DOGE $ 0.1907 + 11.79 % ADA $ 0.7386 + 11.54 % TRX $ 0.2546 + 2.53 % SUI $ 3.9071 + 18.54 % LINK $ 15.52 + 13.55 % AVAX $ 21.46 + 10.70 % XLM $ 0.2837 + 9.62 % SHIB $ 0.0₄1410 + 11.34 % BCH $ 417.78 + 16.61 % LEO $ 8.8161 + 1.02 % PI $ 0.6384 + 10.07 % HBAR $ 0.1911 + 9.50 % TON $ 3.2039 + 6.76 % News Back to menu News Markets Finance Tech Policy Focus Prices Back to menu Prices Data Back to menu Data Trade Data Derivatives Order Book Data On-Chain Data API Research & Insights Data Catalogue AI & Machine Learning Indices Back to menu Indices Multi-Asset Indices Reference Rates Strategies and Services API Insights & Announcements Documentation & Governance Research Back to menu Research Consensus Back to menu Consensus Consensus 2025 Consensus 2025 Coverage Sponsored Back to menu Sponsored Thought Leadership Press Releases CoinW MEXC Phemex Advertise Videos Back to menu Videos CoinDesk Daily Shorts Editor's Picks Podcasts Back to menu Podcasts CoinDesk Podcast Network Markets Daily Gen C Unchained with Laura Shin The Mining Pod Newsletters Back to menu Newsletters The Node Crypto Daybook Americas State of Crypto Crypto Long & Short Crypto for Advisors Webinars & Events Back to menu Webinars & Events Consensus 2025 Policy & Regulation Conference English Select Language English en Filipino fil Español es Українська uk Français fr Русский ru Português pt-br Italiano it News Prices Data Indices Research Consensus Sponsored Sign In Sign Up Policy Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Celsius Founder Alex Mashinsky Sentenced to 12 Years in Prison for Fraud Mashinsky pled guilty to securities and commodities fraud charges last December. By Cheyenne Ligon | Edited by Nikhilesh De May 8, 2025, 7:42 p.m. Celsius CEO Alex Mashinsky (CoinDesk archives) NEW YORK, NY — Alex Mashinsky, the founder and former CEO of bankrupt crypto lending platform Celsius Network, was sentenced to 12 years in prison on Thursday for fraud. STORY CONTINUES BELOW Don't miss another story. Subscribe to the State of Crypto Newsletter today . See all newsletters Sign me up By signing up, you will receive emails about CoinDesk products and you agree to our terms of use and privacy policy . Judge John Koeltl of the Southern District of New York (SDNY) handed down the sentence, saying the 12 years — composed of a 120-month sentence to be served concurrently with a separate 144-month sentence for the two charges Mashinsky pled guilty to — split the difference between the defense and prosecution's sentencing memos. Before Celsius’ collapse in 2022, Mashinsky repeatedly lied to investors about the safety of their deposits. He falsely claimed that Celsius had regulatory approval, he insisted that the platform did not make uncollateralized loans when, in fact, it did, and he lied about selling his CEL tokens while manipulating the price for his own financial gain. Mashinsky’s poor leadership and self-dealing drove Celsius into bankruptcy, leaving a gaping $1.2 billion hole — which prosecutors said is more like $7 billion at today’s prices — in the company’s balance sheet. Mashinsky was arrested in July 2023 on a seven-count indictment, but eventually reached a plea deal with prosecutors that saw him plead guilty to one count each of securities and commodities fraud last December. As part of his plea deal, prosecutors agreed to a maximum sentence of 30 years in prison, but suggested a 20-year sentence in their sentencing memorandum filed with the court last month. “Mashinsky’s crimes were not the product of negligence, naivete, or bad luck,” prosecutors wrote. “They were the result of deliberate, calculated decisions to lie, deceive and steal in pursuit of personal fortune.” Celsius Alex Mashinsky Breaking News Top Stories Cheyenne Ligon On the news team at CoinDesk, Cheyenne focuses on crypto regulation and crime. Cheyenne is originally from Houston, Texas. She studied political science at Tulane University in Louisiana. In December 2021, she graduated from CUNY's Craig Newmark Graduate School of Journalism, where she focused on business and economics reporting. She has no significant crypto holdings. X icon About About Us Masthead Careers CoinDesk News Crypto API Documentation Contact Contact Us Accessibility Advertise Sitemap System Status DISCLOSURE & POLICES CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies . CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one. Ethics Privacy Terms of Use Cookie Settings Do Not Sell My Info © 2025 CoinDesk, Inc. X icon