Former crypto executive convicted of fraud to report to prison this week
Alex Mashinsky, the former CEO of collapsed crypto lender Celsius Network, is set to begin serving his 12-year federal prison sentence this Friday. The sentencing follows his guilty plea in December 2024, where he admitted to making false statements about Celsius’ Earn Program and misleading investors.
According to court filings from the U.S. District Court for the Southern District of New York, Mashinsky must surrender to authorities by 2:00 p.m. ET on Friday. The court has recommended that he serve his sentence at the Federal Prison Camp in Otisville, New York, a minimum-security facility located about 75 miles from New York City.
From Industry Giant to Collapse
Before its downfall, Celsius was considered one of the largest crypto lending platforms, rivaling names like FTX and Binance. However, the company filed for bankruptcy in July 2022, after the Terra ecosystem collapse triggered a liquidity crisis across the sector. Mashinsky resigned as CEO a few months later.
In January 2024, Celsius exited bankruptcy and began distributing approximately $3 billion in assets to creditors. Court documents show that Mashinsky forfeited all claims to the company during the bankruptcy proceedings.
Criminal Charges and Conviction
Mashinsky was initially indicted on seven felony charges in July 2023, including commodities fraud and market manipulation of the Celsius (CEL) token. After failing to dismiss several charges, he agreed to a plea deal and was sentenced to 12 years in prison.
The company’s former chief revenue officer, Roni Cohen-Pavon, also pleaded guilty to four felony counts and is scheduled for sentencing on September 17, 2025.
Broader Crackdown on Crypto Executives
Mashinsky joins a growing list of high-profile crypto leaders facing criminal convictions:
- Sam Bankman-Fried (FTX) – serving 25 years in California.
- Changpeng Zhao (Binance) – served four months after pleading guilty.
- Do Kwon (Terraform Labs) – awaiting sentencing after a guilty plea in August.
Mashinsky’s imprisonment marks one of the harshest sentences handed down to a crypto executive in the U.S., signaling tougher enforcement in the digital assets sector. Regulators and courts appear determined to hold executives accountable for mismanagement, fraud, and investor losses in the aftermath of the 2022 crypto market crash.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.