- Celsius founder Alex Mashinsky received a 12-year prison sentence for fraud and token manipulation.
- He must forfeit $48 million and nine properties but will remain free until after his daughter’s wedding in Memphis later this month.
- Victims of the scheme and prosecutors pushed for a harsher penalty, citing significant financial and emotional harm.
A federal court has sentenced Alex Mashinsky, founder of the crypto lender Celsius, to 12 years in prison for participating in a scheme involving the manipulation of the company’s digital token. Judge Koeltl ordered Mashinsky to surrender $48 million and nine residential properties as part of his punishment, according to Inner City Press.
Mashinsky will not begin serving his sentence until September 12, as the court granted his request to attend his daughter’s wedding in Memphis, Tennessee later this month, reports Cate Webb. This delay was permitted despite objections from those affected by the Celsius collapse.
During sentencing, Mashinsky became emotional, saying in court, “I never wanted to hurt anyone. I know victims want to see me punished,” according to Inner City Press. His lawyers asked for a sentence of just over one year, highlighting his three years of service in the Israeli military and arguing that a longer sentence for a 60-year-old veteran would be excessive.
Prosecutors rejected the defense’s arguments, insisting that Mashinsky’s conduct was “deliberate” and “calculated,” causing “catastrophic financial and emotional harm on thousands of victims,” as detailed in court documents. Victims addressed the court directly, noting that some people died while waiting for justice, and questioning Mashinsky’s request for leniency.
Judge Koeltl acknowledged Mashinsky’s background as a refugee and his distinguished military service, but said, “A substantial sentence is still necessary for just punishment. I sentence you to 144 months or 12 years,” per the court record.
Mashinsky pleaded guilty last December to two counts of fraud for manipulating the Celsius (CEL) token, as reported by Reuters. Under the terms of his plea deal, he is not allowed to appeal any sentence that is 30 years or less.
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