Alex Mashinsky founded Celsius Network and served as its CEO. In December 2024 he pleaded guilty to commodities-fraud and securities-fraud counts; in May 2025 a federal judge sentenced him to 12 years in prison.
In-Depth Explanation
Celsius was a centralized crypto platform that accepted customer deposits, offered a yield program, and provided collateralized loans. Customers entrusted assets to the company rather than controlling protocol contracts directly. The criminal case concerned Mashinsky’s statements about Celsius and its CEL token, as well as his handling of customer assets. The distinction matters: Celsius’s collapse was a company and custody failure, not a failure of a decentralized protocol.
History
- 2017 — Celsius is founded. Mashinsky launched the crypto-lending company and later became its chief executive.
- June 12, 2022 — Withdrawals stop. Celsius halted customer withdrawals; the company filed for Chapter 11 bankruptcy the following month.
- December 3, 2024 — Guilty plea. Mashinsky pleaded guilty to commodities fraud and securities fraud.
- May 8, 2025 — Sentencing. The U.S. District Court imposed a 12-year prison term, supervised release, a fine, and forfeiture.
Related Terms
See Also
- What the Celsius Collapse Tells Us About Crypto Lending Risk
- Bitcoin as Collateral: Bank Loans, Mortgages, and DeFi Explained
- Why Algorithmic Stablecoins Keep Failing
- Swap crypto with ChangeNOW
Sources
- U.S. Department of Justice: Celsius founder sentenced — The DOJ states Mashinsky pleaded guilty to commodities and securities fraud and received a 12-year sentence in May 2025.
- SEC: Charges Celsius and Alex Mashinsky — The SEC describes its 2023 civil allegations concerning Celsius and the Earn product; those allegations are separate from the later criminal plea.
- Celsius Chapter 11 case portal — The court case portal provides the bankruptcy docket for Celsius after its July 2022 Chapter 11 filing.