The founder of the collapsed Crypto platform Celsius has been sentenced to 12 years behind bars.
Alexander Mashinsky was initially arrested in July 2023 on accusation of the violation of the securities legislation by the US Securities and Exchange Commission (SEC).
In December 2024 he pleaded guilty of a multi-billion dollar crypto-fraud. The Ministry of Justice (DOJ) said that Mashinsky Celsius wrongly represented as a safe platform and the potential for profitability exaggerated, so that the user base was significantly brought.
After Mashinky’s lawyers asked for a mild one year in prison earlier this week, the former CEO of Celsius was sentenced to 12 years by the courts yesterday, according to a press release from an office of the American lawyer.
Said American lawyer Jay Clayton in a statement:
‘Alexander Mashinsky focused on retail investors with promises that he would keep their ‘digital assets’ safer than a bank, while he actually used those assets to place risky bets and to hold his own bags.
In the end Mashinsky earned tens of millions of dollars, while his customers lost billions. The investors of America earn better. The case for tokenization and the use of digital assets is strong, but it is not a license to mislead. The rules against fraud still apply, and the SDNY (Southern District of New York) will hold those who are responsible for their crimes. “
According to Reuters, the representatives of Mashinky have not yet commented on the ruling.
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