Founder of Crypto Platform Celsius Sentenced to 12 Years in Jail for Fraud

Prosecutors stated that Alexander Mashinsky misled customers about Celsius’s proprietary crypto token and artificially inflated its value.

Alex Mashinsky, founder and former CEO of bankrupt cryptocurrency lender Celsius Network, exits the Manhattan federal court in New York City on July 25, 2023. Brendan McDermid / Reuters

The founder and former CEO of bankrupt cryptocurrency lender Celsius Network has been sentenced to 12 years in prison on fraud charges, the Department of Justice (DOJ) said on May 8.

Alexander Mashinsky, 59, of New York, was sentenced by U.S. District Judge John G. Koeltl on May 8 after pleading guilty in December 2024 to commodities fraud and securities fraud.