After pleading guilty in December for his financial crimes, Alex Mashinsky, the founder of Celsius, received 12 years in prison this week. Back on this conviction.
12 years in prison for the CEO of Celsius
Back in July 2021: in the wake of the collapse of Terra (Luna), the centralized platform Celsius, specialist in Lending with its particularly attractive yields, declares itself in bankruptcy after having tried as best they can to give the change for a month.
In this collapse, the amounts at stake then amounted to $ 4.7 billion.
The months that follow, several irregularities will surface, like accusations of manipulation on the Cel token, or reports that Alexander Mashinsky, the founder and ex-CELSIUS, had withdrawn his funds from the platform, aware of the ax which was about to fall.
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After investigation, the entrepreneur will eventually be arrested in July 2023 for 7 counts, including financial fraud and manipulation of CEL.
If the case has made much less noise than that of FTX and the imprisonment of Sam Bankman-Fried, the magnitude of financial crimes should not be underestimated. While the interested party pleaded guilty in December 2024, the prosecutors in charge of the file also asked for a prison sentence of at least 20 years in the face of the gravity of the facts.
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On Thursday, American district judge John Koeltl returned his verdict to the Manhattan court, condemning Alex Mashinsky to 12 years' imprisonment. In addition to this incarceration, the interested party also renounced $ 48 million as well as several real estate, while in accordance with his advocacy agreement, he will not appeal this conviction.
When said conviction was pronounced, Alex Mashinsky spoke to signify his feeling of also paying for the faults of his collaborators:
I have the feeling that if I am here to assume my responsibilities, I assume them for a thousand employees. None of them dared to say what he did. That's all, your honor.
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To serve his sentence, his lawyers asked that he be incarcerated at the Federal Correctional Institution of Otisville, a prison of average security in New York State. When he was released, if he goes after 12 years, Alex Mashinsky will be 72 years old.
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Source: Coindesk
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Since 2021, I have devoted my free time to seriously train myself on cryptocurrencies in order to acquire maximum knowledge and credibility. I often have the opportunity to carry out interviews with influential personalities from the blockchain industry. I also conduct in -depth analyzes on web3 themes to offer exclusive content to cryptoast readers.
Vincent Mayor
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