Celsius CEO sentenced to 12 years in prison for $ 5 billion crypto scandal
An important chapter in the legal processing of the cryptocurrencies was concluded this week when Alex Mashinsky, once a well -known name in the area of digital lending, was sentenced to a twelve -year prison sentence.
Celsius Network's former CEO was found guilty of having orchestrated fraudulent activities that contributed to one of the most serious breakdowns in the history of the industry.
The consequences of the collapse of Celsius in mid-2022, which coincided with general market turbulence and the disclosure of the failure of the Terra Blockchain, led to the fact that customer funds were lost in billions. Mashinsky, who had advertised Celsius as a secure and transparent credit platform, instead distorted user assets and manipulated CEL, the native tokens of the company to enrich itself personally and for the company.
Court reports described a dark atmosphere during the verdict. Around 60 those present listened when Mashinsky visibly emotionally admitted that they had deceived investors. His defenders represented him as the first offender, who was more of ambition than greed. However, the judge remained unimpressed and referred to the extent of the financial damage that was inflicted on the thousands of users.
Although the federal prosecutor had called for a harder punishment of 20 years, the final judgment reflected a certain mildness – possibly due to the cooperation and the regeneration of the Mashinsky. In view of the customer losses of $ 5 billion and the outstanding repayments to creditors, however, the punishment is considered a strict message to other crypto executives.
Meanwhile, there is speculation about whether Mashinsky could apply for a pardon by the president. Earlier examples – including the pardon of the founders of Bitmex by the former President Trump – and current reports, according to which CZ from Binance checks similar paths, indicate that political interventions in criminal proceedings in connection with cryptocurrencies could continue to play a role.
