Alex Mashinsky Begins Prison Term
Alex Mashinsky, the former CEO of Celsius Network, is poised to begin his 12-year prison term this Friday after entering a guilty plea and undergoing a sentencing session. As detailed in official records filed on May 12, Mashinsky must report to federal officials by 2:00 PM ET at the Federal Prison Camp located in Otisville, New York. This minimum security institution is roughly 75 miles (120 kilometers) from Manhattan and has been suggested by the court for Mashinsky’s incarceration.
Celsius Network’s Downfall
Celsius was once a significant player in the cryptocurrency landscape prior to its collapse, operating alongside major firms like FTX. However, the platform faced substantial difficulties after the Terra ecosystem’s failure in 2022, which contributed to a downturn in the crypto sector. The company filed for bankruptcy in July 2022, shortly after which Mashinsky stepped down from his position as CEO.
Bankruptcy and Legal Challenges
In January 2024, Celsius emerged from bankruptcy and commenced the process of distributing approximately $3 billion in assets to its creditors. Court filings from June indicate that during bankruptcy, Mashinsky relinquished all claims to the company. He was initially charged with seven felony offenses in July 2023 and was set to go on trial before his legal team’s attempt to dismiss several charges related to commodities fraud and price manipulation failed. Roni Cohen-Pavon, the former chief revenue officer of Celsius, has also pleaded guilty to four felony counts and is awaiting sentencing on September 17.
Comparisons with Other Cryptocurrency Figures
As a prominent figure in both the cryptocurrency sector and the legal struggles accompanying it, Mashinsky finds himself alongside other notable individuals facing serious allegations, including:
- Sam Bankman-Fried, former FTX CEO, sentenced to 25 years in prison;
- Changpeng Zhao, former Binance CEO, received a four-month sentence;
- Do Kwon, Terraform Labs co-founder, pending sentencing after a guilty plea made in August.
Cointelegraph has attempted to contact Mashinsky and Cohen-Pavon for their comments, but no response has been received as of the publication date.
