Former Celsius CEO Alex Mashinsky has been sentenced to 12 years in prison for fraud by a US federal court in New York. Although his defense team argued for a lighter sentence citing his previous clean record and military service, prosecutors pushed for a 20-year term, emphasizing that Mashinsky targeted unsophisticated retail investors. Jay Clayton, the presiding US attorney, stated that the sentence serves as a warning against fraud in the cryptocurrency industry. Mashinsky’s attorneys highlighted differences between his case and that of other high-profile crypto figures, asserting he did not misappropriate or embezzle customer assets. The case gained additional context given past leniencies shown by the Trump administration towards crypto executives, raising discussions about potential presidential pardons for others in similar circumstances, including Sam Bankman-Fried and Roger Ver. The broader implications of Mashinsky’s sentence signal a tightening of enforcement in the evolving regulatory landscape for cryptocurrencies.

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