CEO Celsius Alek Mashinski was sentenced to 12 years in case Cripto Fraud

Alexander Mashinski, Former Executive Director Celsius NetworkHe was sentenced to 12 years in prison on Thursday after pleading guilty for two points of fraud, a dramatic autumn for company leader once greeted as a “bank” crypto industry.

Standing before the US District Judge John G. Koeltl in the southern district of Mashinski, Mashinski faced the consequences of what prosecutors described as a whisper scheme for investment investment fraud.

In December, he pleaded guilty of the commodity fraud and the scheme to manipulate Celsius token.

His imposition of the sentence took place in court 14a at 500 Pearl Street – a place that saw several cryptological executives.

Mashinski’s legal issues started in 2023 years When was arrested on charges of securities, goods and wire fraud, just as Celsius reached a $ 4.7 billion Settlement with the Federal Trade Commission – one of the largest in the history of the FTC.

A settlement, which remains contingents in Celsius returning what remains funds for the customer in BankruptcyHe emphasized the size of the scam.

Prosecutors accused the machine’s wrong investors about the safety and profitability of the Celsius Production Platform, at the same time sally sold tens of millions of dollars in personal farms.

Although he initially denied guilty, His Memory Chapter in the long-term case, which also drew from the Commission for Securities and Replacements, and commission for trade in trade and Mashinski on orchestrating more $ 1 billion.

Mechanical decline is the mirror destiny of other former copied executives such as FTK founder Sam Bankman-FriedBinance’s Changpeng Zhao and Rade Kwon from Terraform Laboratory.

Bankman-Fried was convicted up to 25 years in prison In March 2024. for huge fraud and conspiracies they brought him cryptocurrency Exchange and related fund for Hedge, Alameda Research.

Once celebrated as a crypto wunderkind, Bankman-Fried was exposed due to improper billions of dollars in customer funds to support their own trading company, Alameda research and for the life of extravagant lifestyle in Hong Kong and later Bahamas.

Caroline Ellison, which led the Alameda research and was romantically involved in Bankman-Fried, received a significantly brighter penalty of two years. Its cooperation with prosecutors proved to be credulations in discovering complex web of false activities on FTX, enabling the authorities to build a strong case against banked fried and other leaders.

Bankman-Fried is in the process of attracting his belief and penalties.

Ryan Salami, Former Top Lieutenant FTX Founders I Bankman-Fried, It was sentenced to 90 monthsMonitored for three years of supervised release.

FTX Engineering Chief Nishad Singh There is no time in prison and three years of supervised release for his role in cryptic deception; and Gary Wang, co-founder and main technology officer of FTX, also avoided prison time.

In May 2024, the bankruptcy estate of FTX announced that almost all customers would get their money back – and more.

The judge on Wednesday rejected most allegations against celebrities and athletes involved in the promotion of FTX in advertisements and other platforms.

The stars love That beardGisele Bundchen, Kevin O’Leari and Stephen Curri They were among those who face a suit made by a group of FTX investors.

In November 2023, Zhao, usually known as “CZ”, hit a contract with the American government to resolve a multi-year investigation StageThe world’s largest market cryptocurrency.

Zhao deviated as Executive Director 2023. years, but retained a significant stake in Binance.

In April 2024. year was the founder of Bynance’s billionaire sentenced to four months in prison After pleaded guilty of charges to enable money laundering in his Cripto Exchange. He withdreed his sentence in a federal prison with low security in Lompoca, California.

Under the new guidance, the stage underwent a strategic swivel turn, aligning to the pro-cripto apartment of the Trump administration. CEO Richard Teng described the second term of President Donald Trump as “Fantastic Reset” For the cryptocurnancy industry, noticing a dramatically improved bynance regulatory environment in the USA

It was 2022. years, and Kwon drove high. His company, TerraForm Labs, was behind one of the most popular American stablecoins on the planet, the funding rolled, his coins (called Terra and Luna) were collectively valuable to a tenth billion dollars and like Bankman-Fried. He landed a place At the prestigious forbes 30 under 30 leaf.

And then everything crashed.

While most stablecoins supports cash mixtures and other assets that corresponds to the value of the token in circulation, instead, the invention of KVOn was supported by a complex set of codes instead. When the algorithm failed in May 2022. It cost $ 40 billion in multiple investors and contributed to the collapse of Hedge Fund three Hears in June 2022. years, and then crippto lenders Voyager, and then Cripto Lenders, followed by Criptoo Lenders, and then Cripto Tiesing.

The implosion of Stablecoina also rocked confidence in the sector and accelerated the slider in cryptures but as part of a broader withdrawal of risk.

Last JuneThe referee signed on Kwon and Bankrupt TerraForm Laboratories are settled With US Securities and Replacement Commissions for $ 4.5 billion.

Kwon is extradited to US off Montenegro in the face Charges of Fraud In January 2025.

When 3AK Lenders He asked for their money in the flood of margin calls, the money was not there. Many contravides in companies, in turn, unable to meet the requirements of their investors, including retail owners who promised an annual yield of 20%.

Three companies are all bankrupted and currently in different stages of resolving their debts, with Celsius, who just got out of bankruptcy in January.

3AC co-founder of Kyle Davies said it was not sorry for the collapse of his fund and so far he managed to avoid prison time By refusing around the worldUnlike his co-founder, they are Zhu, who served time in Singapore prison.