Celsius Founder Sentenced to 12 Years in Prison

On May 8, a New York court sentenced Celsius founder Alex Mashinsky to 12 years in prison. The former CEO will also forfeit $48 million and real estate, according to Reuters.

In December 2024, Mashinsky pleaded guilty to commodities fraud and manipulating the price of the CEL token. Judge John Keltl described the crimes as “extremely serious,” noting that the punishment does not compensate the victims’ losses.

“The defense claims he is writing a book on gravity but fails to grasp the gravity of his actions,” stated one of the victims, Cameron Cruz.

Lawyers requested a one-year sentence, prosecutors sought 20 years, and creditors demanded life imprisonment.

Before Celsius’s collapse, Mashinsky deceived investors about the “safety” of deposits, concealed unsecured loans, and manipulated the CEL price, earning $48 million. Losses for over 100,000 clients amounted to $4.7 billion.

Under the plea deal, Mashinsky cannot appeal the sentence. He will begin serving his term in September at Otisville prison, where Mango Markets attacker Avraham Eisenberg is also held.

Upon release, the former Celsius head will be 72 years old.

Back in November 28, 2024, Celsius bankruptcy managers announced plans to distribute $127 million among creditors.