Former Celsius CEO Alex Mashinsky was sentenced to 12 years in prison for Crypto Assets fraud and must report to prison by September 12. Prosecutors stated that he orchestrated the largest fraud in the encryption industry and faced a potential 20-year sentence.

According to Gate.io News bot and Bloomberg, Alex Mashinsky, the founder of the Crypto Assets lending platform Celsius Network, has recently been sentenced to 12 years in prison. Mashinsky engaged in cryptocurrency fraud during his tenure at Celsius Network. Previously, Celsius Network filed for bankruptcy protection in July 2022, with the platform having over 1.8 million users and managing assets totaling $12 billion. Bloomberg reported that, in addition to serving his sentence, Mashinsky must also pay fines and forfeit illegal gains.

Gate news bot message, according to documents from the New York District Court, the sentencing date for former Celsius CEO Alex Mashinsky is set for May 8. Mashinsky must face the court's judgment regarding charges of fraud and manipulation of the CEL token price. Mashinsky was arrested in July 2023, facing multiple charges including commodity fraud and securities fraud. In December 2023, he pleaded guilty to one count of commodity fraud and one count of price manipulation, with a maximum sentence of 20 years in prison. The sentencing, originally scheduled for April 8, was postponed by a month due to the defense needing to submit additional evidence. According to TheBlock, Celsius managed $13 billion in customer deposits before filing for bankruptcy, which the company announced during the downturn of the cryptocurrency market in 2022.

U.S. federal prosecutors have charged Celsius Network founder Alex Mashinsky, submitting 200 victim statements, alleging he engaged in commodity and securities fraud. Mashinsky has pleaded guilty and could face 30 years in prison. Victims are seeking the maximum sentence, while the defense team is requesting no more than 366 days of incarceration. Sentencing will be announced on May 8.

ChainCatcher News, Celsius Network filed an appeal on December 31 against Judge John Dorsey's decision to dismiss their $2 billion defamation claim against FTX. The appeal is currently scheduled for a hearing in the district court, marking the latest development in the ongoing legal battle between the two embattled cryptocurrency companies. This appeal arises from Celsius' claim that defamatory statements made by senior executives, employees and affiliated companies of FTX have had a negative impact on its reputation and financial health, accelerating its bankruptcy in July 2022. Celsius believes that FTX's public statements have weakened customers' confidence in its services, leading to a withdrawal of funds by customers and ultimately driving the platform towards bankruptcy. According to court documents, Celsius

The trial of Alex Mashinsky, founder and former CEO of Celsius Network, has been postponed until January next year, and another defendant in the 2019 financial fraud case, Roni Cohen-Pavon, was convicted last year. Alex Mashinsky's trial will begin on January 28, 2025.

According to news from the Gate.io News bot and a report by Cointelegraph, Celsius founder Alex Mashinsky has expressed objections to the 20-year prison sentence proposed by the U.S. Department of Justice. Mashinsky admitted in December 2024 to charges of commodity fraud and manipulating the price of the CEL Token, having made $48 million in profits by selling tokens prior to the collapse of Celsius. On May 5, his legal team submitted a response memorandum to the New York District Court, requesting to reduce the sentence to less than 366 days. The legal team pointed out that Mashinsky, as a first-time non-violent offender, has a flawless business record spanning 30 years.

The founder of Celsius is accused of fraud and manipulating token prices, facing 20 years in prison, which has sparked strong dissatisfaction. Alex Mashinsky is alleged to have earned 48 million USD in 2024 from the case and is currently requesting a sentence reduction to within 366 days. He admitted to the crime before Celsius filed for bankruptcy, with the case involving 4.7 billion USD in debt and losses for hundreds of thousands of users.

According to Gate.io News bot and a report by CoinDesk, the U.S. Department of Justice submitted documents to the court recommending a 20-year prison sentence for Celsius founder and former CEO Alex Mashinsky. The documents indicate that Mashinsky is accused of orchestrating fraud, resulting in customer losses of nearly $7 billion. In this case, Mashinsky has admitted to making false promises to clients, falsely claiming that deposits were safe while manipulating the price of CEL tokens for personal gain. The prosecution noted in the documents that this was a carefully planned fraud case that caused significant losses to clients and set a warning example for the cryptocurrency industry. Sentencing in the case will take place on May 8.

Jin10 reported on May 5 that Softcom Power announced in the evening that its shareholder CEL Bravo Limited, holding 8.69% of the shares, intends to reduce its holdings of the company's shares by no more than 9.5294 million shares (accounting for 1.00% of the company's total share capital) through centralized bidding trading within three months after 15 trading days from the date of this announcement.

Former CEO Alex Mashinsky of Celsius is facing criminal charges, including commodity fraud and manipulation of Token prices. The motion to dismiss the charges was rejected by the judge, and the trial is scheduled to begin in 2025.

Celsius Network has made a second payment in the bankruptcy proceedings, distributing $127 million to eligible creditors, mainly in the form of liquid encryption assets. This payment raises the total recovery rate to 60.4%. The payment covers various categories of creditors, and the former CEO will stand trial with a jury in 2025.

Celsius former CEO Mashinsky and the prosecutor will appear in court on November 13th to address motions to dismiss certain charges in the indictment. Mashinsky was arrested on charges of commodity fraud and market manipulation. The hearing is scheduled for November 13th, and the trial is set to begin on January 28th next year.