Former Celsius CEO Alex Mashinsky has been sentenced to 12 years in prison for fraud by the US federal court for the Southern District of New York. Despite his legal team's arguments for a lighter sentence based on his prior clean record, military service, and willingness to plead guilty, prosecutors sought a 20-year term, emphasizing the fraud's targeting of unsophisticated retail investors. Jay Clayton, the US attorney leading the prosecution, stated that this sentence serves as a warning to other entrepreneurs in the cryptocurrency space. Mashinsky's defense noted that he did not misappropriate customer assets and criticized the prosecution's portrayal of him as a predator. Mashinsky's harsh sentence contrasts with early Trump-era pardons for crypto executives, suggesting a more stringent approach by the current DOJ. As regulations surrounding cryptocurrency evolve with the political climate, Mashinsky’s case highlights the ongoing tension between enforcement and leniency in the crypto industry.

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