Alex Mashinsky after Celsius, from crypto celebrity to a 12-year sentence

Celsius sold itself as a safer, smarter alternative to traditional finance, promising unusually high returns and reassuring customers that their assets were secure. When the broader crypto market turned in 2022, that image collapsed. Celsius froze withdrawals, filed for bankruptcy, and revealed a balance-sheet hole that reached well over $1 billion. The public remembers that panic, but the legal follow-up is more important than many people realize. Federal prosecutors accused founder Alex Mashinsky of misleading customers about Celsius's safety and manipulating the price of its CEL token while secretly profiting. In December 2024, he pleaded guilty to two fraud counts, avoiding a trial. In May 2025, a federal judge sentenced him to 12 years in prison and ordered forfeiture of $48.4 million. So the full ending is not just another crypto company gone bust. It is a bankruptcy story that turned into a major criminal case against the executive who had spent years telling customers everything was under control.