The former CEO of Celsius, Alex Mashinsky, has been sentenced to 12 years in prison for fraud by a federal court in New York. A surprising decision, at a time when Donald Trump begins his second term with several presidential pardons granted to major figures in the crypto sphere. While markets were predicting a light sentence, this conviction shows that certain red lines will not be crossed.
Alex Mashinsky, the long-revered — then reviled — face of Celsius, is back in the spotlight, but this time not for his rhetoric on financial freedom. The former CEO appears as the accused, denouncing a U.S. justice system that he finds too harsh. While the Department of Justice is seeking a 20-year sentence, the 59-year-old cries out against the excess: for him, this punishment would amount to a "death sentence in prison."
The Terra storm heavily impacted the Bitcoin price and several crypto projects, including Celsius Network. In July 2022, the crypto lender formerly led by Alex Mashinsky declared bankruptcy, with a balance sheet burdened by over $4.7 billion in debt to its users. However, the Celsius team remained resilient during these challenging times. Recently, the bankruptcy court gave the green light for the execution of the financial restructuring plan for this crypto company. To top it off, Celsius acquired a Bitcoin mining site in Texas.