Celsius founder and former CEO Alex Mashinsky has been sentenced to serve 12 years in prison for crypto fraud. Mashinsky defrauded hundreds of thousands of customers lured by his firm’s high interest rates on digital-asset deposits.

Mashinsky pleaded guilty to the charges back in December and was sentenced Thursday by US District Judge John Koeltl in Manhattan. Prosecutors previously wanted the former Celsius CEO to serve 20 years, calling him “unrepentant.” Federal prosecutors charged Mashinsky with fraud, conspiracy, and market manipulation. Moreover, they claimed that he had misled Celsius customers, using their investments to increase the value of both the company and a native cryptocurrency.

However, Mashinsky’s defense argues that a shorter sentence would suffice. “He was not motivated by malevolence, cruelty, greed, or ego,” Mashinsky’s lawyers said in their filing. “And his guilty plea most certainly is not an agreement to abandon good faith, zealous advocacy or to present mitigation evidence at sentencing.”

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In 2022, Mashinsky was one of many who were charged with fraud after the unprecedented market crash led to a myriad of bankruptcies. Celsius had filed for Chapter 11 bankruptcy that year, after launching in 2017. When the crypto market crash took place, customers sought to withdraw their funds as cryptocurrency values plummeted. Three Arrows Capital, Voyager Digital, and FTX were among the most prominent companies that filed for bankruptcy amid the ongoing market collapse.

The 12-year sentence is composed of a 120-month sentence to be served concurrently with a separate 144-month sentence for the two charges Mashinsky pled guilty to. “Mashinsky’s crimes were not the product of negligence, naivete, or bad luck,” prosecutors wrote. “They were the result of deliberate, calculated decisions to lie, deceive, and steal in pursuit of personal fortune.”

Celsius founder and former CEO Alex Mashinsky has been sentenced to serve 12 years in prison for crypto fraud. Mashinsky defrauded hundreds of thousands of customers lured by his firm’s high interest rates on digital-asset deposits.

Mashinsky pleaded guilty to the charges back in December and was sentenced Thursday by US District Judge John Koeltl in Manhattan. Prosecutors previously wanted the former Celsius CEO to serve 20 years, calling him “unrepentant.” Federal prosecutors charged Mashinsky with fraud, conspiracy, and market manipulation. Moreover, they claimed that he had misled Celsius customers, using their investments to increase the value of both the company and a native cryptocurrency.

However, Mashinsky’s defense argues that a shorter sentence would suffice. “He was not motivated by malevolence, cruelty, greed, or ego,” Mashinsky’s lawyers said in their filing. “And his guilty plea most certainly is not an agreement to abandon good faith, zealous advocacy or to present mitigation evidence at sentencing.”

Also Read: ADA’s $5 Moment, DOGE’s $1 Day: Closer Than You Think

In 2022, Mashinsky was one of many who were charged with fraud after the unprecedented market crash led to a myriad of bankruptcies. Celsius had filed for Chapter 11 bankruptcy that year, after launching in 2017. When the crypto market crash took place, customers sought to withdraw their funds as cryptocurrency values plummeted. Three Arrows Capital, Voyager Digital, and FTX were among the most prominent companies that filed for bankruptcy amid the ongoing market collapse.

The 12-year sentence is composed of a 120-month sentence to be served concurrently with a separate 144-month sentence for the two charges Mashinsky pled guilty to. “Mashinsky’s crimes were not the product of negligence, naivete, or bad luck,” prosecutors wrote. “They were the result of deliberate, calculated decisions to lie, deceive, and steal in pursuit of personal fortune.”