Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert
Zero fees, no slippage
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
Celsius founder Alex Mashinsky sentenced for 12 years in prison for stealing $48M

Celsius founder Alex Mashinsky sentenced for 12 years in prison for stealing $48M

Crypto.NewsCrypto.News2025/05/08 16:00
By:By David MarsanicEdited by Jayson Derrick

Alex Mashinsky, disgraced founder of bankrupt crypto lending firm Celsius, stole $48 million from customers.

A landmark case of crypto fraud reached its conclusion. On Thursday, May 8, Celsius founder Alex Mashinsky was sentenced to 12 years in prison for his role in the firm’s bankruptcy, which cost its users billions.

According to the prosecution, Mashinsky victimized thousands of people, many of whom lost their life savings. At the same time, the disgraced founder stole more than $48 million from Celsius. Mashinsky pleaded guilty to securities and commodities fraud.

Mashinsky pleads for sympathy

The sentence fell short of the 20-year term requested by the Department of Justice, which called it a just punishment. Mashinsky disagreed, and his lawyers, in a May 5 filing, described the DOJ’s request as a ‘death-in-prison’ sentence . They argued that Mashinsky never intended to harm customers or steal their money.

His legal team attempted to elicit sympathy by highlighting the persecution his Jewish family faced in Soviet Russia and his military service in the Israeli Defense Forces. However, the judge did not take those factors into consideration during sentencing.

Celsius was a crypto lender that promised high interest rates while touting the safety of its investments. On some deposits, they gave out 17% in interest , much higher than the market rate. At its height, the firm claimed it had 1.7 million users, managed $11.7 billion worth of assets, and gave out $8 billion in loans.

But in 2022, as the crypto market faced extreme volatility, Celsius’s operations began to unravel. Instead of secure loans, the firm had engaged in highly leveraged trading strategies. When markets turned, those positions collapsed, leaving Celsius insolvent and its depositors with billions in losses.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!