Celsius Network
A crypto lending platform that froze withdrawals and filed for bankruptcy in 2022. Initial bankruptcy filings cited ~$4.7 billion owed to creditors. Founder Alex Mashinsky pleaded guilty to fraud and was sentenced to 12 years.
Also known as: Celsius, Celsius Network, Alex Mashinsky, CEL
Summary
Celsius Network was a cryptocurrency lending platform that halted customer withdrawals in June 2022 and filed for Chapter 11 bankruptcy the following month. According to initial bankruptcy filings, more than 100,000 creditors claimed a collective $4.7 billion in losses. [1][2]
Allegations
Prosecutors said founder Alex Mashinsky misrepresented the safety of customer deposits — including a false claim of regulatory approval — and manipulated the price of the platform's CEL token while personally profiting. [1][2] Reporting cited a balance-sheet shortfall described as roughly $1.2 billion at the time of collapse. [1]
Outcome
Mashinsky pleaded guilty to commodities fraud and securities fraud in December 2024 and was sentenced in May 2025 to 12 years in prison, agreeing to forfeit more than $48 million. [1][2]
Bracketed numbers refer to the numbered sources listed below.
People & entities involved
- Alex MashinskyFounder & CEOIndividualsFounder and CEO of the crypto lending platform Celsius Network. Pleaded guilty to commodities and securities fraud and was sentenced in May 2025 to 12 years in prison.
- Roni Cohen-PavonChief revenue officerIndividualsFormer chief revenue officer and top lawyer of Celsius Network. He pleaded guilty in 2023 to four counts including manipulating the price of Celsius's CEL token, cooperated against CEO Alex Mashinsky, and was sentenced in 2026 to time served.
Sources (2)
See also
- Loci (LOCIcoin)TokensA 2017–2018 ICO for 'LOCIcoin' tied to the InnVenn IP-search platform. The SEC charged Loci and CEO John Wise with fraud for raising $7.6M on false claims about revenue, headcount, and user base; Wise also misused investor funds. Settled with a $7.6M penalty and an officer/director bar.
- Blockchain Terminal (BCT)TokensA 2017–2018 ICO (BCT tokens, ~$30M) for a 'Blockchain Terminal' — a Bloomberg-style crypto trading terminal. The SEC and DOJ said convicted ex-hedge-funder Boaz Manor secretly ran it under a fake identity ('Shaun MacDonald'), using associate Edith Pardo as a front, and lied about the product's adoption.
- Crowd Machine (CMCT)Tokens
This page was last updated on Jun 8, 2026. View revision history.