🚨 Former Celsius CEO Alex Mashinsky Reports to Prison

[cryptobro]

Alex Mashinsky, co-founder and ex-CEO of bankrupt crypto lender Celsius, is set to surrender to federal authorities this Friday before 2:00 pm ET.

Key Details:

Mashinsky will serve his sentence at the Federal Prison Camp in Otisville, New York, a minimum-security facility about 75 miles from NYC.

He was initially indicted on seven felony charges in July 2023, including commodities fraud and market manipulation tied to Celsius’ CEL token.

After losing motions to dismiss key charges, Mashinsky pleaded guilty earlier this year.

His former CRO, Roni Cohen-Pavon, also pleaded guilty and will be sentenced on Sept. 17.

️ Legal Background

Celsius collapsed in July 2022, following the Terra meltdown that triggered a broader crypto crash.

The firm filed for bankruptcy with billions in liabilities and exited bankruptcy in Jan. 2024, distributing $3B in assets to creditors.

Mashinsky forfeited all claims to Celsius during the bankruptcy proceedings.

Bigger Picture

Mashinsky now joins the list of major crypto executives facing prison:

Sam Bankman-Fried (FTX) → 25 years

Changpeng Zhao (Binance) → 4 months

Do Kwon (Terraform Labs) → awaiting sentencing after guilty plea

The case signals a new era of accountability in crypto, with courts and regulators pushing hard against high-profile fraud.

What do you think? Is this the start of real cleanup in the industry, or just a few high-profile examples?