Celsius founder Alex Mashinsky sentenced to 12 years in prison

Alex Mashinsky, the laminitis and erstwhile CEO of the collapsed cryptocurrency lending steadfast Celsius, has been sentenced to 12 years successful situation for fraud that led to “billions successful losses,” the Department of Justice announced connected Thursday.

Celsius, which held $25 cardinal successful assets astatine its peak, abruptly halted withdrawals and transfers during a broader crypto clang successful 2022, locking up billions successful lawsuit funds. The steadfast filed for bankruptcy just weeks later.

The DOJ charged Mashinsky with securities fraud successful 2023, accusing him of misrepresenting Celsius’s concern and finances. It besides claimed Mashinsky artificially inflated the terms of the platform’s token, CEL, by “spending hundreds of millions purchasing it connected the unfastened market.” Mashinsky pleaded guilty to 1 number of securities fraud and 1 number of commodities fraud past December.

Mashinsky’s apprehension comes arsenic the Trump medication takes a softer stance connected crypto regulation. Last month, a memo obtained by The Washington Post revealed the disbandment of a DOJ division dedicated to investigating crypto firms. The Securities and Exchange Commission has dropped respective cases against companies successful crypto, including Coinbase, Kraken, and Robinhood.

“Alexander Mashinsky targeted retail investors with promises that helium would support their ‘digital assets’ safer than a bank, erstwhile successful information helium utilized those assets to spot risky bets and to enactment his ain pockets,” US Attorney Jay Clayton said successful the property release. “In the end, Mashinsky made tens of millions of dollars portion his customers mislaid billions.”