Alex Mashinsky, founder of Celsius Network, has been sentenced to 12 years in prison for defrauding hundreds of thousands of customers who were enticed by high returns on crypto deposits. The 59-year-old former CEO, who pleaded guilty in December, was sentenced by US District Judge John Koeltl. Prosecutors had sought a 20-year term, labeling him “unrepentant.” Celsius collapsed during the 2022 “crypto winter,” freezing over $5 billion in customer assets. Mashinsky admitted to making misleading statements on YouTube and manipulating the CEL token’s price, earning $42 million.

Though his lawyers requested a light sentence, citing his intentions to protect investors and the downturn's unexpected severity, prosecutors described a “years-long campaign of lies.” At its peak, Celsius held $25 billion in assets. Victims submitted over 200 letters, with many urging harsh punishment. One victim, Hollis Waite, said losses had devastated his family’s future, including college plans for his daughters.

Mashinsky expressed remorse, calling his false claims “inexcusable” and saying he had hoped to shield users. The case is part of broader enforcement under President Biden’s administration, although the Trump administration has since softened its stance on crypto. The Justice Department maintains it will still pursue fraud cases involving crypto investors.