Close Menu
  • Academy
  • Events
  • Identity
  • International
  • Inventions
  • Startups
    • Sustainability
  • Tech
  • Español
    • Português
What's Hot

Accelerate opportunities for new discoveries

China’s APT41 misuses Google Calendar for malware command and control operations

Oil and gas have boomed in New Mexico. Its schools are contending with pollution’s effects

Facebook X (Twitter) Instagram
  • Home
  • About Us
  • Advertise with Us
  • Contact Us
  • DMCA
  • Privacy Policy
  • Terms & Conditions
  • User-Submitted Posts
Facebook X (Twitter) Instagram
Fyself News
  • Academy
  • Events
  • Identity
  • International
  • Inventions
  • Startups
    • Sustainability
  • Tech
  • Español
    • Português
Fyself News
Home » Celsius founder Alex Masski has been sentenced to 12 years in a crypto fraud that was ordered to pay $48 million
Tech

Celsius founder Alex Masski has been sentenced to 12 years in a crypto fraud that was ordered to pay $48 million

userBy userMay 9, 2025No Comments3 Mins Read
Share Facebook Twitter Pinterest Telegram LinkedIn Tumblr Email Copy Link
Follow Us
Google News Flipboard
Share
Facebook Twitter LinkedIn Pinterest Email Copy Link

Five months after pleading guilty to a multi-billion-dollar fraud, Celsius founder Alex Masski was sentenced to 12 years in prison on Thursday for fraudulent investors. The Ukrainian-born Maskie was first arrested in 2023 after a federal investigation into the collapse of his crypto lending startup.

On Thursday, the former CEO of the bankrupt crypto lending platform was standing before District Judge John Cortre in Manhattan. Prosecutors have been hoping for at least 20 years, misleading thousands of clients and calling it “just a punishment” for pocketing more than $48 million in the process.

“Alex Massky, founder and former CEO of the bankrupt cryptocurrency lender Celsius Network, was sentenced to 12 years in prison on Thursday after pleading guilty to securities and product fraud in December,” Reuters reported.

Celsius Network founder has been in prison for 12 years to scam crypto investors

The 59-year-old Maski was found guilty of securities and merchandise fraud after mispromoting the company as a safe haven for traditional Celsius tokens, cells and crypto investors. The fallout left billions of dollars in losses, adding the machine ski name to the list of disgraced crypto executives currently behind the bar.

His ruling includes a three-year supervised release and a court order that confiscates $48.4 million. His legal team had been seeking just over a year, citing regrets and desire to get things right with his family and former clients.

“The cases of tokenization and digital asset use are strong, but they are not licenses to deceive,” US lawyer Jay Clayton said in a post-ruling statement.

The Machine Ski ruling ranks among the toughest ever since the 2022 cipher crash. FTX founder Sam Bankman-Fried has now served for 25 years in his role in another collapse and is suing the verdict.

Once based in Homie, New Jersey, Celsius was founded in 2017 and has promised a high return to crypto depositors and provided interest of up to 17% on select accounts. However, users quickly pulled out funds as the crypto market crashed in mid-2022. That July, the company filed for Chapter 11 bankruptcy, revealing a $1.19 billion hole in its balance sheet.

Born in Ukraine and raised in Israel, Machine Ski moved to New York in the late 1980s. His fall from grace is sudden and public and has been marked by multiple private lawsuits from the SEC, CFTC, FTC and New York Attorney General Letitia James.

Rise and fall in the Celsius network

The celsius Network was launched in 2017 with the promise of high returns and slogans like “Unbank Yourself” and was sold as a safe alternative to traditional banks. They claimed that they would generate high yields for users by offering programs such as “acquisition” and “custody” and leveraging cryptocurrency loans and borrowings. By 2021, celsius managed $25 billion in assets, primarily from retail investors.

But behind the scenes, Machineski and his team misrepresented the company’s financial stability and used customer funds to artificially inflate CEL prices. This created a false sense of profitability and security, making investors vulnerable to huge losses when the company collapses.

In June 2022, celsius frozen the withdrawal of 1.7 million customers and locked over $4.7 billion in crypto assets. A month later, the company filed for bankruptcy and joined other crypto startups affected by exposure to now bankrupt hedge fund Three Arrows Capital (3AC).

🚀Want to share the story?

Submit your stories to TechStartUps.com in front of thousands of founders, investors, PE companies, tech executives, decision makers and tech leaders.

Please attract attention


Source link

Follow on Google News Follow on Flipboard
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email Copy Link
Previous ArticleChildren’s authors Mo Willems and The Pigeon stare at the future with a new book
Next Article Former Northvolt CEO Peter Carlson secures funding for the company’s new AI manufacturing startup after bankruptcy
user
  • Website

Related Posts

Top Startup and Tech Funding News – May 28, 2025

May 28, 2025

Generation Engine Optimization (GEO): How a New Era belongs to AI and Sees

May 28, 2025

Meta AI hits 1 billion active users every month. Subscriptions and monetization then says Zuckerberg

May 28, 2025
Add A Comment
Leave A Reply Cancel Reply

Latest Posts

Accelerate opportunities for new discoveries

China’s APT41 misuses Google Calendar for malware command and control operations

Oil and gas have boomed in New Mexico. Its schools are contending with pollution’s effects

Over 100,000 WordPress sites at risk from critical CVSS 10.0 vulnerabilities in Wishlist plugins

Trending Posts

Elon Musk announces US President’s departure from Trump administration | Elon Musk News

May 29, 2025

“Humiliation, not aid”: A desperate quest for food in Gaza | Israeli-Palestinian conflict news

May 29, 2025

Marco Rubio says it will begin revoking visas for Chinese students | Donald Trump News

May 28, 2025

Subscribe to News

Subscribe to our newsletter and never miss our latest news

Please enable JavaScript in your browser to complete this form.
Loading

Welcome to Fyself News, your go-to platform for the latest in tech, startups, inventions, sustainability, and fintech! We are a passionate team of enthusiasts committed to bringing you timely, insightful, and accurate information on the most pressing developments across these industries. Whether you’re an entrepreneur, investor, or just someone curious about the future of technology and innovation, Fyself News has something for you.

Top Startup and Tech Funding News – May 28, 2025

Generation Engine Optimization (GEO): How a New Era belongs to AI and Sees

Meta AI hits 1 billion active users every month. Subscriptions and monetization then says Zuckerberg

AI’s Next Horizon: Gemini 2.5 and Google Beam Take Center Stage at Google I/O 2025

Facebook X (Twitter) Instagram Pinterest YouTube
  • Home
  • About Us
  • Advertise with Us
  • Contact Us
  • DMCA
  • Privacy Policy
  • Terms & Conditions
  • User-Submitted Posts
© 2025 news.fyself. Designed by by fyself.

Type above and press Enter to search. Press Esc to cancel.