Alex Mashinsky, the former head of bankrupt crypto lender Celsius, is set to begin serving his prison sentence this Friday.
Court documents show he must surrender to federal authorities by 2:00 pm ET, with the Bureau of Prisons recommending he be housed at the minimum-security Federal Prison Camp in Otisville, New York.
Mashinsky’s downfall marks one of the most high-profile criminal cases in the crypto sector. Once seen as a pioneer of digital lending, Celsius collapsed in July 2022 amid the industry-wide turmoil following Terra’s implosion.
Months later, Mashinsky stepped down as CEO while the company navigated bankruptcy proceedings. Celsius ultimately exited bankruptcy in early 2024, distributing roughly $3 billion to creditors.
The former executive was indicted in July 2023 on seven felony counts, including commodities fraud and market manipulation tied to Celsius’s CEL token. His legal team attempted to have some charges thrown out but was unsuccessful.
By May 2025, he reached a plea deal and was sentenced to federal prison. Court filings also confirmed he forfeited all claims to Celsius during bankruptcy.
Mashinsky’s case isn’t isolated. Former Celsius revenue chief Roni Cohen-Pavon admitted guilt to four felonies and awaits sentencing in September. Across the industry, several other high-profile executives have faced justice: Sam Bankman-Fried is serving 25 years, Changpeng Zhao completed a four-month sentence, and Do Kwon is awaiting his own judgment after pleading guilty.
Mashinsky’s imprisonment underscores the growing trend of U.S. courts holding crypto leaders accountable, a signal that enforcement actions are intensifying against misconduct in the sector.
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Source: https://coindoo.com/former-celsius-ceo-alex-mashinsky-heads-to-prison-after-fraud-conviction/