U.S. District Judge John G. Koeltl sentenced Alexander Mashinsky to 12 years in prison on Thursday. The judge said the crimes were “extremely serious.” As a result, Mashinsky made over $45 million, while many customers lost everything.

Celsius Collapsed After Risky Bets

Celsius filed for bankruptcy in 2022. By then, the company had taken in $20 billion from thousands of investors. Initially, Mashinsky promised safety and profit. He claimed Celsius was like a modern bank where people could earn interest on crypto.

However, during the bankruptcy, it became clear that Mashinsky had used customer funds for risky investments. Therefore, many people lost their life savings.

Prosecutors Accuse Him of Deceit

Assistant U.S. Attorney Allison Nichols said Mashinsky misled customers from the beginning. She said, “He preyed on hope. Mashinsky knew exactly what he was doing — selling these people hope.”

Moreover, she added that customers would not recover all their losses through bankruptcy.

Mashinsky Apologizes in Court

Before his sentencing, Mashinsky cried several times. He apologized to his customers. He talked about his past. At age 7, his family left a small town in Soviet Ukraine with U.S. help. Then, they moved to Israel. Later, Mashinsky served as a fighter pilot there. Eventually, he settled in the United States.

“I never meant to hurt anybody here after all this country has done for me,” he said. “I’m truly sorry.” He also described himself as someone “who came from nothing.”

He Lied About Company’s Strength

In December, Mashinsky pleaded guilty. He admitted that between 2018 and 2022, he misled customers. He said their money was safe, even though it wasn’t. Meanwhile, he secretly made risky bets and gave out unprotected loans using their funds.

Defense Blames Market Crash

Mashinsky’s lawyers blamed the crypto crash in May and June 2022. They argued that his actions were not intended to hurt anyone. In court documents, they said he was not “predatory, exploitative or venal.”

Even so, the court found him guilty of serious fraud.

Victims Speak Out

Several victims spoke at the hearing. Cameron Crewes, who represents a victims’ group, asked for a tough sentence. He pointed out that nearly 250 victims died before getting justice.

“Many people have been wiped out,” he said.

Lawyer Acknowledges Pain

Mashinsky’s attorney, Marc Mukasey, admitted that the victims’ letters were harsh. “We hear the intensity of their pain,” he said. “Our sympathies are with everyone.”

U.S. Attorney Warns Against Crypto Abuse

U.S. Attorney Jay Clayton condemned Mashinsky’s actions. “Mashinsky made tens of millions of dollars while his customers lost billions,” he said.

He also warned other crypto leaders. “The case for tokenization and the use of digital assets is strong,” Clayton said, “but it is not a license to deceive. The rules against fraud still apply.”