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The court sentenced the founder of Celsius to 12 years in prison.
The court sentenced the founder of Celsius to 12 years in prison
On May 8, a New York court sentenced Celsius founder Alex Mashinsky to 12 years in prison. The former CEO will also forfeit $48 million and real estate, Reuters reports.
In December 2024, Mashinsky pleaded guilty to commodities fraud and manipulation of the CEL token's quotes. Judge John Keltl described the crimes as "extremely serious," noting that the punishment does not compensate for the harm done to the victims.
The lawyers asked for one year in prison, the prosecutors demanded 20 years, and the creditors — life imprisonment.
Before the collapse of Celsius, Mashinsky lied to investors about the "safety" of deposits, concealed unsecured loans, and manipulated the price of CEL, making $48 million from it. The losses of more than 100,000 clients amounted to $4.7 billion.
Under the terms of the deal, Mashinsky cannot appeal the sentence. He will begin serving his time in September at the Otisville prison, where Mango Markets attack participant Avraham Eisenberg is already being held.
By the time of his release, the former head of Celsius will be 72 years old.
On November 28, 2024, the bankruptcy managers of Celsius announced plans to distribute $127 million among creditors.