In a significant development within the cryptocurrency sector, Alex Mashinsky, the former CEO of Celsius Network, has been sentenced to 12 years in prison. The verdict was delivered in a Manhattan court following Mashinsky’s guilty plea to charges of securities and commodities fraud.
The sentencing marks one of the longest for crimes related to last year’s cryptocurrency market downfall. Mashinsky had faced allegations of misleading customers about the safety of Celsius’ operations and manipulating the value of its proprietary token, Cel. Prosecutors argued for a minimum 20-year sentence, citing the impact on thousands of customers and billions in financial losses.
Despite Mashinsky’s plea for a lighter sentence, citing remorse, the court also imposed three years of supervised release and a substantial forfeiture. Celsius Network, founded in 2017, went bankrupt in 2022, highlighting the volatile nature of digital asset lending practices.
(With inputs from agencies.)