Celsius Founder Alexander Mashinsky Sentenced to 12 Years in Prison for Fraud
Alexander Mashinsky, ex-CEO of Celsius, receives 12-year prison sentence for defrauding investors, misleading customers about their investments.
The fall of crypto hedge fund Three Arrows Capital, and lenders Voyager Digital and Celsius, can all be traced to the collapse of Kwon’s stablecoin project.
Celsius CEO Alex Mashinsky sentenced to 12 years in multibillion-dollar crypto fraud case
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Mashinsky operated the company as “a risky investment fund, taking in customer money under false and misleading pretenses and turning customers into unwitting investors in a business far riskier and far less profitable than what Mashinsky had represented.
Celsius Founder Alex Mashinsky Sentenced to 12 Years in Prison
Wired·8d·Mostly ReliableThis source is generally reliable but sometimes includes opinion, propaganda, or minor inaccuracies.Leans LeftThis outlet slightly leans left.Celsius declared bankruptcy in 2022, exposing risky financial bets Mashinsky had made with some of the $20 billion that thousands of customers poured into the company.
Founder of crypto platform Celsius Network is sentenced to 12 years in prison
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Summary
Alexander Mashinsky, founder of Celsius Network, was sentenced to 12 years in prison after pleading guilty to commodities and securities fraud. Prosecutors described him as a 'financial predator' who misled customers about the safety of their investments, resulting in substantial losses for many. The U.S. District Judge emphasized the serious nature of Mashinsky's crimes, which enabled him to pocket over $45 million while customers lost billions. During the sentencing, Mashinsky expressed remorse, but victims highlighted their suffering, further underlining the case's impact on the cryptocurrency industry.
Perspectives
Alexander Mashinsky, founder of Celsius Network, received a 12-year prison sentence after being found guilty of fraud, having misled thousands of customers and caused significant financial losses during a catastrophic business collapse.
Mashinsky's defense blamed the downturn in cryptocurrency markets for the collapse of his platform, arguing that he did not intend to exploit or harm his customers, but prosecutors depicted him as a predator who deceived his clients for personal gain.
The case highlights broader issues within the cryptocurrency industry regarding regulation, investor protection, and the devastating impacts of fraudulent schemes, as many victims expressed profound losses, with some dying before seeing justice.