Breaking: Celsius Founder Alex Mashinsky Sentenced to 12 Years in Prison for Cryptocurrency Fraud

Alex Mashinsky, the founder and former CEO of the Celsius network lending protocol ( CEL ), was sentenced to 12 years in prison on Thursday, May 8. U.S. District Judge John G. Koeltl in the Southern District of Manhattan noted that Mashinsky had executed a comprehensive scheme to defraud investors. The 12-year prison sentence is not the sentence that the federal prosecutor requested based on the established charges. According to the federal prosecutor, Mashinsky deserves a 20-year prison sentence as a fair punishment. Notably, Mashinsky pleaded guilty to two counts of fraud, including commodity fraud and securities fraud. Under the plea agreement, Mashinsky agreed to pay a fine of 48 million dollars and will not appeal any sentence of up to 30 years. However, this amount is just a drop in the bucket as Celsius has identified a financial loss of over $1 billion. Nevertheless, the court has approved the restructuring plan for Celsius into a creditor-owned Bitcoin mining company called Ionic Digital LLC. What’s Next for the Cryptocurrency Market After Mashinsky’s Conviction Since the cryptocurrency industry experienced a bear market in 2022, driven by the collapse of Terra Luna and FTX, lawmakers in various jurisdictions have implemented measures to protect web3 investors. In the United States, Sam Bankman Fried has become an important lesson for web3 developers looking to overturn the cryptocurrency regulatory rules that have been established. Therefore, the cryptocurrency market is in a favorable position for exponential growth in the coming years, driven by clear legal frameworks. Furthermore, institutional investors have compelled global legislators to pay attention to digital assets as a tested form of alternative investment.