Celsius Founder Faces 20-Year Sentence for $7B Fraud Scheme

BTCC / BTCC Square / Global Cryptocurrency /

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2025-04-29 14:32:02

Alex Mashinsky, founder of the collapsed Celsius Network, could serve two decades in prison following a DOJ sentencing recommendation. Federal prosecutors allege Mashinsky orchestrated a deliberate fraud that cost investors billions, while misleading clients about the safety of their crypto holdings.

Celsius users lost access to $4.7 billion in assets when the platform froze withdrawals in June 2022. The 97-page sentencing memorandum highlights Mashinsky’s admission to deceiving customers and manipulating the CEL token for personal gain.

Prosecutors are pushing for a severe penalty to set a precedent in the cryptocurrency industry. The May 8 sentencing will mark a pivotal moment for accountability in digital asset markets.

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