Alex Mashinsky, founder of Celsius Network, was sentenced to 12 years in prison on May 8, 2025, for defrauding customers of over $5 billion. Pleading guilty in 2024, he admitted to misleading investors about Celsius’ finances and inflating its CEL token, pocketing $42 million. The 2022 bankruptcy left customers with heavy losses, though $3 billion was recovered. Despite Mashinsky’s apology, prosecutors highlighted a “years-long” fraud, backed by 200 victim letters. The sentencing, under a Trump administration easing crypto probes, underscores ongoing fraud crackdowns.
