Former Celsius CEO Alex Mashinsky Sentenced to 12 Years in Prison for Fraud

In Brief:

Alex Mashinsky, the former CEO of Celsius Network, was sentenced to 12 years for misappropriating funds and manipulating CEL token prices.

The sentencing marks the conclusion of a major case that resulted in over $5 billion in customer losses.

Alex Mashinsky, the former CEO of Celsius Network, has been sentenced to 12 years in prison for his involvement in fraudulent activities that led to significant financial losses for Celsius customers. The charges included commodities fraud and securities fraud, with Mashinsky pleading guilty to these crimes in December.

Mashinsky's legal troubles stemmed from his role in misappropriating funds from Celsius customers and manipulating the price of the company's native token, CEL. The company's bankruptcy in July 2022, following a series of market crises, led to a mass withdrawal of funds, with customers ultimately losing over $5 billion.

While federal prosecutors recommended a 20-year prison sentence, Mashinsky's defense argued for a lesser sentence, claiming that he wasn't motivated by greed or malicious intent. However, the court ultimately handed down a sentence of 12 years, which some creditors felt was too lenient, especially considering the maximum sentence for his charges was 30 years.

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