Alexander Mashinsky, former CEO of Celsius Network, was sentenced to 12 years in prison Thursday after pleading guilty to two counts of fraud, a company leader once called the "bank" in the crypto industry.
Mashinsky stood in the southern area of Manhattan, U.S. District Judge John G.
In December, he pleaded guilty to Commodines' fraud and adopted a plan to manipulate Celsius tokens.
His judgment was conducted in court at 14A, Court of Court 500 Pearl Street, where several crypto executives have been transformed into the gospel.
Mashinsky's legal trouble began in 2023, when he was arrested on allegations of securities, commodities and wire fraud, just like Celsius' $4.7 billion settlement with the Federal Trade Commission, one of the largest trade commissions in FTC history.
The solution still depends on Celsius depending on the remaining content of client assets in the bankruptcy proceedings, emphasizing the scale of fraud.
Prosecutors accused Mashinsky of misleading investors for the security and profitability of the Celsius-generated platform, while secretly selling tens of millions of dollars in personal holdings.
Although he initially denied a guilty plea, his plea and Thursday's sentencing mark the final chapter of a multi-year case, which also sparked charges from the SEC and Commodity Futures Trading Commission, which accused Selcius and Mashsky of orchestrating a fraud plan.
Mashinsky's failure reflects the fate of other once useful crypto executives at Binance and Do Kwon at Terraform Labs, such as FTX founder Sam Bankman-Fried, such as FTX founder Sam Bankman-Fried, reflecting the fate of other once-helpful crypto executives.
Bankman was sentenced to 25 years in prison in March 2024 for massive fraud and conspiracy doomed by his cryptocurrency exchange and related hedge fund Alameda Research.
Once celebrated as a cryptocurrency, Bankman Fried was exposed for embezzling billions of dollars in client funds to support his own trading company, Alameda Research, and lived a luxurious lifestyle in Hong Kong and later the Bahamas.
Caroline Ellison, who led the Alameda study, romantically participated in Bankman's French fries and was sentenced to a two-year verdict that was significantly lighter. Her collaboration with prosecutors proves that it is crucial in uncovering the complex network of fraudulent activities on FTX, which allows authorities to establish strong cases against Bankman Fried and other executives.
Bankman Fried is appealing his conviction and sentence.
Former lieutenant Ryan Salame, founder of FTX, was sentenced to 90 months and then sentenced to three years of supervised release.
FTX engineering director Nishad Singh has no jail time and three years of supervised release due to his role in crypto fraud; FTX co-founder and chief technology officer Gary Wang also avoided prison time.
In May 2024, FTX's bankrupt estate announced that almost all customers will recover their money, and more.
The judge on Wednesday dismissed most claims against celebrities and athletes participating in advertising and other platforms that promote FTX.
Stars like Tom Brady, Gisele Bündchen, Kevin O'Leary and Stephen Curry are stars facing lawsuits against a group of FTX investors.
In November 2023, Zhao (commonly known as "CZ") reached an agreement with the U.S. government to resolve a multi-year investigation into Binance, the world's largest cryptocurrency exchange.
Zhao resigned as CEO in 2023 but retained second-hand shares.
In April 2024, Binance's billionaire founder was sentenced to four months in prison after pleaded guilty to pleading guilty to the charge that his cryptocurrency exchange allowed money laundering. He serves his sentence in a low-security federal prison in Lombok, California.
Under the new leadership, Binance has experienced a strategic hub that is closely aligned with the Trump administration's pro-Cretto position. CEO Richard Teng described President Donald Trump's second term as a "marvelous reset" of the cryptocurrency industry, noting that the U.S. financing environment has greatly improved.
Months before Bankman Fried and FTX fraud exposed, Binance and its founders admitted fault a few years ago and cashed out billions of dollars with the United States, Kwon is widely regarded as Crypto's top villain as he almost dismantled the entire department through his failed American dollar peggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggnecoin.
It was May 2022, Kua Engao. His company, Terraform Labs, lagged behind one of the most popular US-PEGGGEGGECOINS on Earth, venture capital is rolling, and his coins (called Terra and Luna) are uniformly worth billions of dollars, just like Bankman Fried, Kwon also landed in the Bankman Fried forbes under 30 Under 30 Under 30 Under 30 Under 30.
Then everything collapsed.
Although most Stablecoins are backed by a mix of cash and other assets to match the value of tokens in circulation, the invention of rights is backed by a complex set of code. When the algorithm failed in May 2022, investors lost $40 billion in market value overnight, resulting in devastating losses for multiple investors and in June 2022 the crash of hedge fund three-arrow capital, followed by cryptocurrency lender Voyager numbers, then Blockfi, then Blockkees, then Genesis, and then on Fttx, also FTX, and also FTX.
The implosion of Stablecoin has also sparked confidence in the industry and accelerated the slideshow already in cryptocurrencies, part of a wider callback from risk.
Last June, a judge signed $4.5 billion for Do Kwon and his bankrupt Terraform Labs to settle with the U.S. Securities and Exchange Commission.
Quan was extradited to the United States from Montenegro and faced fraud charges in January 2025.
The collapse of crypto hedge funds three arrows and the collapse of lender Voyager Digital and Celsius can all be traced back to the collapse of the Right Stablecoin project.
The money doesn't exist when the 3AC lenders ask for some of their cash back in the flood. Many of the company's counterparties, in turn, are unable to meet the needs of its investors, including those that have promised to acquire 20% of retail holders.
All three companies are bankrupt and are currently at various stages of repaying their debts, with Celsius just going bankrupt in January.
3AC co-founder Kyle Davies said he doesn't regret the collapse of the fund, and so far, unlike his co-founder Su Zhu, he has managed to avoid jail time, who spent some time in a Singapore prison.