Celsius Founder Sentenced for Crypto Fraud
Alex Mashinsky, the founder of the defunct crypto lender Celsius, has been sentenced to 12 years in prison.The court found him guilty of securities and commodities fraud, which led to the collapse of Celsius and important losses for its users.
Mashinsky stole over $48 million from Celsius customers. His actions affected thousands of people, many of whom lost their life savings. Despite pleading guilty, Mashinsky’s lawyers argued for leniency, citing his family’s history and military service. However, the judge was unmoved.
The Department of Justice had sought a 20-year sentence, calling it a fair punishment. Celsius had promised high interest rates, up to 17%, attracting 1.7 million users and managing $11.7 billion in assets.But in 2022, the crypto market’s volatility exposed Celsius’s risky trading strategies, leading to its insolvency.
Key points include:
- Mashinsky sentenced to 12 years for crypto fraud.
- Stole $48 million from Celsius customers.
- Celsius promised high interest rates but engaged in risky trading.
- Thousands lost life savings due to Celsius’s collapse.
For more details, visit the Department of Justice website.
