Celsius founder Alex Mashinsky has been punished for 12 years in prison for fraud

New York, NY – Alex Mashinsky, the founder and former CEO of the Bankrupt Crypto Lending Platform Celsius Network, was punished for 12 years in prison on Thursday for fraud.

Judge John Koeltl of the Southern District of New York (SDNY) gave the sentence, saying the 12-year-old-consisting of a 120-month sentence to be served simultaneously with a separate 144-month sentence for two charges that Mashinsky had guilty to-showing the “super serious” crime of Mashinsky. The sentence divides the difference between just one year and a day in prison requested by his defense team, and the 20 years suggested by prosecutors. He also said he would lose $ 48 million and several pieces of real estate.

“No matter what the sentence is, the sentence does not cure the financial or psychological damage caused by the victims,” ​​Koeltl said.

Prior to Celsius’ collapse in 2022, Mashinsky repeatedly lied to investors about the safety of their deposits. He said Celsius had approved the regulation, he insisted that the platform did not make uncollateralized loans when, in fact, he did, and he lied about selling his cel tokens while manipulating the price for his own financial benefit – making more than $ 48 million earning from the Cel just, the prosecution said. Mashinsky’s poor leadership and self-contact pushed Celsius to losses, leaving a gaping $ 1.2 billion holes-which prosecutors said were like $ 7 billion in today’s prices-in the company’s balance.

When Celsius collapsed, more than 100,000 creditors said they lost a collective $ 4.7 billion according to preliminary losses.

“Alexander Mashinsky targets retail investors with promises that he keeps their ‘digital assets’ safer than a bank, if in fact he used those possessions to put dangerous bets and to line his own pocket,” US lawyer Jay Clayton said in a statement. “In the end, Mashinsky made ten -ten million dollars while his customers lost billor -billions. American investors deserve better. The case for tokenization and the use of digital assets is strong but it is not a license to deceive.

In both their pre-centencing documents and their testimony to the court on Thursday, Mashinsky and his lawyers attempted to overthrow the CEO’s one-time role in fraud. His court lawyers said Mashinsky had “no malicious bones in his body” and the government’s attempt to recognize him as the architect of a fraud scheme was “an adventure.”

Mashinsky wept as his lawyer Marc Mukasey, told the court of his personal characteristics-along with his military service to the Israeli army, his alleged track record of renting unmistakable people to work in his various companies and, disturbing, about his continued work in a non-concept to consider as avoiding reasons for Mashinsky’s sentence. When Mashinsky himself spoke to the judge, he shouted over and over again as he apologized for the injury caused by his victims.

“As someone who comes from nothing, I recognize how difficult it is for people to earn, save and invest in crypto,” Mashinsky said. “I politely ask the victims of forgiveness and I apologize to them all for my mistakes. I am truly regretting.”

Six of the victims spoke in court on Thursday, detailing their illness and suffering after Celsius’ collapse.

A victim, Cameron Crewes, told the court that Mashinsky and his lawyers’ twist in his behavior was a “terrible minimization” of the harm he caused Celsius.

“Defense said he was working on a new book about gravity, but he didn’t seem to understand the gravity of the situation,” said Crewes, who added that at least 231 Celsius creditors have died since the platform collapsed, and never do the whole.

Another lender, Hollis Waite, described how he was “incapable of being prepared” to send his two little children to college after losing a significant chimney of his savings to Celsius. But another, Hugh Mitton, told the court that he had lost his sleep, his mental health, and his time since Celsius’s fall. Mitton issued a recognition of Mashinsky’s lawyers who were willing to lose his son’s college, also on Thursday, to attend his rescue and responsibility for his crimes.

“(He does not mention all the people who can no longer send their children to the university,” Mitton said.

Both victims and prosecutors have taught Mashinsky’s ongoing failure to take real responsibility for actions that led to Celsius’ collapse, as well as the finance he and his wife Krissy from Celsius, even with his downfall and subsequent losses-after that, he bought the shirts ” Rotation with Celsius’ “not proposing yourself” slogan.

Mashinsky faces the rock as he listens to the testimony of his victims. When the judge gave the sentence, he seemed surprised, saying:

“I feel that while I’m here to take responsibility, it is my responsibility for a thousand employees. Not one of them has moved forward to say what they have done. That’s all, your honor.”

As part of his plea agreement, Mashinsky will not appeal his sentence. She was ordered to report to himself in prison to begin his sentence in September. His lawyers asked to allow him to serve his sentence at FCI Otisville, a medium-security prison in New York was also a temporary home to mangoes in the market that exploit Avi Eisenberg, who recently punished four years in prison for owned by child pornography.

If he serves the whole of his sentence, Mashinsky will be 72-year-old with release.