The mastermind behind the crypto lending platform Celsius Network has been handed a severe punishment. Alexander Mashinsky, the 59-year-old founder, has been sentenced to 12 years in prison. The judge deemed this necessary due to the seriousness of Mashinsky's crimes, which involved deceiving thousands of customers. The customers were promised secure investments, but their funds were gambled away on risky bets.

Mashinsky's defense team argued that the collapse of Celsius was due to the volatile nature of the cryptocurrency market in 2022. They claimed that Mashinsky's actions were not predatory or exploitative. However, the prosecution painted a different picture. They accused Mashinsky of deceiving customers from the start. He was accused of exaggerating Celsius' ability to generate profits and selling customers a false sense of security.

The prosecution also highlighted the severe psychological harm suffered by some customers. Many lost their life savings and were left financially ruined. The judge noted that a substantial prison term was necessary to deter others from committing similar crimes. The prosecution also emphasized that the customers would not be fully compensated for their losses, even through bankruptcy proceedings.

Before his sentencing, Mashinsky apologized to his customers and spoke about his difficult past. He mentioned his family's escape from a small Ukrainian town and his service in the Israeli Defense Forces. He expressed gratitude towards the United States for providing his family with a better life. Mashinsky admitted to misleading customers between 2018 and 2022. He promised them safe investments while secretly engaging in risky market bets and uncollateralized loans.

The sentencing hearing also featured statements from several victims. One victim, Cameron Crewes, called for a harsh sentence, highlighting the devastating impact on nearly 250 victims who died before seeing justice. The US Attorney's office stated that Mashinsky made tens of millions of dollars while his customers lost billions. They emphasized that investors deserve better and that the rules against fraud still apply, even in the world of digital assets.

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The Crypto Kingpin: 12 Years Behind Bars

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