The CEO CEO Celsius, which was sentenced to 12 years, over 5 billion US dollar crypto scandal

A large chapter in Crypto's legal calculation was concluded this week when Alex Mashinsky, once an outstanding name in digital lending, received a 12-year prison sentence.

Celsius Network's former CEO was found guilty

The consequences of Celsius' Implosion in mid-2022, which coincided with a broad market on turbulence and the entry of the Terra blockchain failure, had billions stranded to customer funds. Mashinsky, who had taken Celsius as a safe and transparent credit platform, instead conducted user assets and manipulated CEL, the native token of the company, for personal and corporate profit.

In the reports of the courtroom, a dark atmosphere was described during the conviction. Around 60 participants listened as a mash, visibly emotional and admitted in misleading investors. His legal team portrayed him as the first offender, who was driven by the ambition rather than greed. However, the judge was not convinced and quoted the size of the financial damage that thousands of users were inflicted.

Although the public prosecutor had called for a durable term of 20 years, the final prison sentence reflected a certain degree of fortune as a result of the cooperation between Mashinsky and the expression of the repentance. With 5 billion US dollars of customer losses and repayments by creditors, however, the punishment is regarded as a strict message to other crypto executives.

In the meantime, speculation advertises whether Mashinsky could strive for a pardon of the president. Earlier examination of the grace that Bitmex's founder was granted by the former President Trump, and the current reports on Binances CZ, which examine similar paths, indicate that the political intervention remains a wild card in crypto-related law enforcement measures.