Alex Mashinsky, the co-founder of the failed crypto lending platform Celsius, has been sentenced to 12 years in prison (via Wired). Federal Judge John Koeltl handed down the sentence after a long hearing in Manhattan that heard from Mashinsky's victims as well as the defendant.
The Department of Justice (DOJ) charged Mashinsky with seven counts of fraud in July 2023. Mashinsky initially denied the charges, before pleading guilty to two counts of commodities fraud and securities fraud. The plea deal saw Mashinsky admit lying to Celsius customers about how the business operated and their funds would be invested, as well as manipulating the price of a proprietary crypto coin for personal benefit. Mashinsky also had to forfeit $48 million to the DOJ.
