Alex Mashinsky, the founder and former CEO of Celsius, received a 12-year prison sentence after pleading guilty to securities and commodities fraud. The cryptocurrency firm, which once boasted $25 billion in assets, collapsed in 2022 amidst a broader crypto market downturn, halting withdrawals and leading to significant customer losses. The DOJ accused Mashinsky of misrepresenting the firm's financial stability and artificially inflating the CEL token's value. His conviction arrives amid shifts in regulatory approaches to the crypto industry, reflected by decreased enforcement actions against other crypto firms.
Mashinsky made tens of millions of dollars while his customers lost billions.
Mashinsky's arrest follows a shift in regulatory oversight, impacting how the crypto industry is monitored.
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