Latest news with #AlexMashinsky
Yahoo
09-05-2025
- Business
- Yahoo
Celsius founder sentenced to 12 years in prison
The founder of cryptocurrency lender Celsius Network was sentenced to 12 years in prison on Thursday. Alex Mashinsky, the company's former CEO, pleaded guilty to securities fraud and commodities fraud in December. Federal prosecutors said Mashinsky artificially boosted the value of Celsius' Cel token and profited more than $48 million as a result. Prosecutors led by U.S. Attorney Jay Clayton also said Mashinsky misled customers about Celsius' safety. 'The case for tokenization and the use of digital assets is strong but it is not a license to deceive,' Clayton, who is based in Manhattan, said in a statement. The sentence includes three years of supervised release and forfeiture of the $48.4 million he made while leading the company. The prosecution had sought a sentence of at least 20 years for Mashinsky, 59, saying it would be 'just punishment' for the billions of dollars in losses he caused for thousands of people. The founder pushed for a one year and one day term, saying he was remorseful. The Hoboken, New Jersey-based Celsius had offered customers as much as 17% interest on some deposits, but as crypto prices plummeted in the summer of 2022, customers rushed to withdraw their cash. Celsius had a $1.19 billion balance sheet deficit when it sought Chapter 11 bankruptcy protection in July of that year. The 12-year sentence is one of the longest to arise from the 2022 crypto market meltdown that stemmed from the collapse of the crypto exchange FTX. That company's founder, Sam Bankman-Fried, is serving a 25-year sentence for fraud. He's currently appealing his conviction. In addition to the criminal trial, Mashinsky has had civil lawsuits filed against him by the Securities and Exchange Commission, Commodity Futures Trading Commission, Federal Trade Commission, and New York Attorney General Letitia James. For the latest news, Facebook, Twitter and Instagram.
Time of India
09-05-2025
- Business
- Time of India
Celsius Network founder Alex Mashinsky gets 12 years of imprisonment for crypto fraud
Celsius Network founder and former CEO Alex Mashinsky has been sentenced to 12 years of prison in a crypto fraud case. According to a report by news agency Reuters, the founder of the bankruptcy cryptocurrency lender pleaded guilty in December to securities fraud and commodities fraud. He has now been sentenced to 12 years of jail by the U.S. District Judge John Koeltl in Manhattan. Operation Sindoor Operation Sindoor: India deploys warships forward as situation at LoC explodes Air siren warning sounded in Chandigarh, Ambala residents advised to stay indoors L-70 guns, Schilka, S-400: Weapons India used to intercept Pak drones Mashinsky's is among the longest in a criminal case arising from the 2022 meltdown in cryptocurrency markets, the report adds. Announcing the imprisonment, federal prosecutors said Mashinsky, 50, misled customers about how safe the company was and artificially boosted the value of its own cryptocurrency, Celsius. The prosecutors asked the court to give him at least 20 years in prison, calling it a "just punishment" for causing billions of dollars in losses and personally gaining over $48 million. "Digital assets have strong potential, but they are not a license to deceive," said U.S. Attorney Jay Clayton from Manhattan. Celsius Network founder pleads guilty Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 2025 Top Trending local enterprise accounting software [Click Here] Esseps Learn More Undo As mentioned before, Mashinsky pleaded guilty last year in December. He said that he felt deep regret, and asked for a lighter sentence of one year and one day. His final sentence includes three years of supervised release and the forfeiture of $48.4 million. What is Celsius Celsius, based in Hoboken, New Jersey, was founded in 2017 and filed for bankruptcy in July 2022 after a rush of customer withdrawals when cryptocurrency prices collapsed. At one point, Celsius promised up to 17% interest on deposits but ended up with a $1.19 billion gap in its finances. Mashinsky, originally from Ukraine, moved to Israel with his family before later settling in New York. Along with the criminal charges, he is also facing civil lawsuits from the U.S. Securities and Exchange Commission, Commodity Futures Trading Commission, Federal Trade Commission, and New York Attorney General Letitia James. AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Free Malaysia Today
09-05-2025
- Business
- Free Malaysia Today
Celsius founder Alex Mashinsky gets 12 years jail for crypto fraud
Ukraine-born Alex Mashinsky moved to New York after visiting the city in 1988. (Reuters pic) NEW YORK : Alex Mashinsky, the founder and former chief executive of bankruptcy cryptocurrency lender Celsius Network, was sentenced yesterday to 12 years in prison after pleading guilty in December to securities fraud and commodities fraud. Mashinsky's sentence was imposed by US district judge John Koeltl in Manhattan, and is among the longest in a criminal case arising from the 2022 meltdown in cryptocurrency markets. Sam Bankman-Fried, who led the FTX exchange, is serving a 25-year prison sentence after being convicted of fraud. He is appealing. Federal prosecutors said Mashinsky, 59, misled customers about Celsius' safety, and artificially inflated the value of Celsius' proprietary token Cel. They sought a prison term of at least 20 years, calling it 'just punishment' for Mashinsky's having victimised thousands of people and caused billions of dollars in losses, while drawing more than US$48 million of personal benefits. 'The case for tokenisation and the use of digital assets is strong but it is not a license to deceive,' US attorney Jay Clayton in Manhattan said in a statement. Mashinsky sought one year and one day in prison, saying he felt remorse and wanted to do right by his family and former Celsius customers. His sentence includes three years of supervised release and a US$48.4 million forfeiture. Lawyers for Mashinsky were not immediately available to comment. Founded in 2017, Hoboken, New Jersey-based Celsius filed for Chapter 11 bankruptcy in July 2022 after customers rushed to withdraw deposits as cryptocurrency prices fell. Born in Ukraine, Mashinsky emigrated with his family to Israel, and moved to New York after visiting the city in 1988. Cryptocurrency lenders have promised easy loan access and high interest rates to depositors while lending tokens to institutional investors, hoping to profit from the difference. Celsius offered 17% interest on some deposits, but had a US$1.19 billion balance sheet deficit when it sought bankruptcy protection. Mashinsky has also faced civil lawsuits by the US securities and exchange commission, US commodity futures trading commission, US federal trade commission and New York attorney-general Letitia James.
The Guardian
08-05-2025
- Business
- The Guardian
Alex Mashinsky of cryptocurrency firm Celsius Network sentenced to 12 years
Alex Mashinsky, the founder and former chief executive of bankruptcy cryptocurrency lender Celsius Network, was sentenced on Thursday to 12 years in prison after pleading guilty in December to securities fraud and commodities fraud. Mashinsky's sentence was imposed by US District Judge John Koeltl in Manhattan, and is among the longest in a criminal case arising from the 2022 meltdown in cryptocurrency markets. Sam Bankman-Fried, who led the FTX exchange, is serving a 25-year prison sentence after being convicted of fraud. He is appealing. Federal prosecutors said Mashinsky, 59, misled customers about Celsius's safety, and artificially inflated the value of Celsius's proprietary token Cel. They sought a prison term of at least 20 years, calling it 'just punishment' for Mashinsky's having victimized thousands of people and caused billions of dollars in losses, while drawing more than $48m of personal benefits. 'The case for tokenization and the use of digital assets is strong but it is not a license to deceive,' the the US attorney in Manhattan Jay Clayton said in a statement. Mashinsky sought one year and one day in prison, saying he felt remorse and wanted to do right by his family and former Celsius customers. His sentence includes three years of supervised release and a $48.4m forfeiture. Lawyers for Mashinsky were not immediately available for comment. Founded in 2017, Celsius, based in Hoboken, New Jersey, filed for Chapter 11 bankruptcy in July 2022 after customers rushed to withdraw deposits as cryptocurrency prices fell. Born in Ukraine, Mashinsky emigrated with his family to Israel, and moved to New York after visiting the city in 1988. Cryptocurrency lenders have promised easy loan access and high interest rates to depositors while lending tokens to institutional investors, hoping to profit from the difference. Celsius offered 17% interest on some deposits, but had a $1.19bn balance sheet deficit when it sought bankruptcy protection. Mashinsky has also faced civil lawsuits by the US Securities and Exchange Commission, the US Commodity Futures Trading Commission, the US Federal Trade Commission and the New York attorney general Letitia James.
New York Post
08-05-2025
- Business
- New York Post
Crypto mogul Alex Mashinsky sentenced to 12 years in prison over billion dollar Celsius fraud
Alex Mashinsky, the founder and former chief executive of bankruptcy cryptocurrency lender Celsius Network, was sentenced on Thursday to 12 years in prison after pleading guilty in December to securities fraud and commodities fraud. Mashinsky's sentence was imposed by US District Judge John Koeltl in Manhattan, and is among the longest in a criminal case arising from the 2022 meltdown in cryptocurrency markets. Sam Bankman-Fried, who led the FTX exchange, is serving a 25-year prison sentence after being convicted of fraud. He is appealing. Advertisement Celsius founder Alex Mashinsky, 59, was sentenced to 12 years in prison Thursday. Sportsfile for Web Summit via Getty Images Federal prosecutors said Mashinsky, 59, misled customers about Celsius' safety, and artificially inflated the value of Celsius' proprietary token Cel. They sought a prison term of at least 20 years, calling it 'just punishment' for Mashinsky's having victimized thousands of people and caused billions of dollars in losses, while drawing more than $48 million of personal benefits. Advertisement 'The case for tokenization and the use of digital assets is strong but it is not a license to deceive,' US Attorney Jay Clayton in Manhattan said in a statement. Mashinsky sought one year and one day in prison, saying he felt remorse and wanted to do right by his family and former Celsius customers. His sentence includes three years of supervised release and a $48.4 million forfeiture. Lawyers for Mashinsky were not immediately available to comment. Celsius filed for Chapter 11 bankruptcy in 2022 after customers rushed to withdraw deposits as cryptocurrency prices fell. REUTERS Advertisement Founded in 2017, Hoboken, NJ-based Celsius filed for Chapter 11 bankruptcy in July 2022 after customers rushed to withdraw deposits as cryptocurrency prices fell. Born in Ukraine, Mashinsky emigrated with his family to Israel, and moved to New York after visiting the city in 1988. Cryptocurrency lenders have promised easy loan access and high interest rates to depositors while lending tokens to institutional investors, hoping to profit from the difference. Advertisement Celsius offered 17% interest on some deposits, but had a $1.19 billion balance sheet deficit when it sought bankruptcy protection. Mashinsky has also faced civil lawsuits by the Securities and Exchange Commission, Commodity Futures Trading Commission, Federal Trade Commission and New York Attorney General Letitia James.
