Categories: Just Politics

Crypto platform Celsius founder jailed for fraud

The founder and former Chief Executive Officer (CEO) of bankrupt cryptocurrency trading platform Celsius, Alexander Mashinsky, was on Thursday, May 8, 2025, sentenced to 12 years in prison on fraud charges.

50-year-old Mashinsky pleaded guilty in December 2024 to securities fraud in a deal that reduced the level of charges he faced.

The sentence comes down nearly three years after the startup’s collapse as a cryptocurrency platform, which offered customers the ability to invest in digital currencies, including its own coin, CEL.

According to the indictment, Celsius executives took more than $4 billion in customers’ assets to finance the platform’s operations, make unsecured loans and invest in high-risk items.

Mashinsky was also accused of manipulating the price of CEL by using customers’ funds to purchase the currency, artificially inflating its price.

What to know about Pope Leo XIV

At its peak in late 2021, Celsius had more than one million clients and held more than $25 billion in assets.

But the company hit hard times in the spring of 2022 as the value of cryptocurrencies plummeted.

Facing deep customer withdrawals, Celsius on June 12, 2022, froze over $4.7 billion in customer accounts before filing for bankruptcy protection a month later, AFP reported.

A progress report published in March found that 93 percent of the frozen assets had been recovered and returned to former Celsius customers.

The 2022 cryptocurrency collapse affected a number of other startups in the field, including FTX, the second-largest crypto exchange that filed for bankruptcy in November 2022.

The Star

Segun Ojo

Recent Posts

Tinubu approves N10bn emergency fund for ebola preparedness

President Bola Ahmed Tinubu has approved the release of N10 billion in emergency funding to…

51 minutes ago

Atiku backed rotational presidency after June 12 annulment — Akume

The Secretary to the Government of the Federation (SGF), George Akume, has revealed that former…

2 hours ago

Kwankwaso opens door to reconciliation with Yusuf

Former Kano State Governor and leader of the Kwankwasiyya movement, Rabiu Musa Kwankwaso, has expressed…

2 hours ago

Umahi gives Abuja-Lokoja road contractors 72-hour deadline to resume work

The Minister of Works, David Umahi, has issued a 72-hour ultimatum to contractors handling the…

3 hours ago

Real Madrid sack Arbeloa, set to appoint Mourinho as new coach

Real Madrid have terminated the appointment of Alvaro Arbeloa as the club’s head coach. The…

3 hours ago

NUPRC fixes June 12 deadline for 2025 oil block bid submissions

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced Friday, June 12, 2026, as the…

4 hours ago

This website uses cookies.