The cited record supports the material proposition.
The US Department of Justice said Celsius founder Alexander Mashinsky pleaded guilty to commodities fraud and securities fraud and was sentenced to 12 years in prison in May 2025.
- About
- Celsius Network LLC
- Claim made by
- US Attorney's Office, Southern District of New York, regulator statement
- Published
- 8 May 2025
- Evidence score
- 93 How it was scored
- Last reviewed
- 25 October 2026
Why this label
The criminal record supports the proposition. DOJ states Mashinsky pleaded guilty on 3 December 2024 to one count of commodities fraud and one count of securities fraudS2. The sentencing release states he was sentenced to 12 years for committing commodities fraud and securities fraud at Celsius, with forfeiture of more than US$48 millionS1. Judge John Koeltl imposed the sentence. The conviction rests on his own guilty plea, not a contested verdict. Mashinsky later filed a motion to vacate the sentence claiming ineffective counselS8. Prosecutors opposed the motion in August 2026 and no ruling had issued as of October 2026S9. The conviction and sentence stand.
Current procedural position
Pleaded guilty 3 December 2024S2. Sentenced to 12 years on 8 May 2025 by Judge John KoeltlS1. Motion to vacate filed in May 2026, opposed by prosecutors in August 2026, no ruling as of October 2026S8S9.
Record supporting the assessment
was sentenced to 12 years for committing commodities fraud and securities fraud at Celsius.
secretly used customer money to prop up the price of CEL token
Conflicting or limiting record
No record located that conflicts with this assessment.
Evidence score: 93 of 100
The score grades how well the record establishes this assessment. It is not a score of Celsius Network LLC. Score = source authority + directness + corroboration + procedural accuracy + currency + reproducibility.
| Component | Points | Max | Reason |
|---|---|---|---|
| Source authorityIs the source competent to establish the proposition? | 29 | 30 | DOJ records a guilty plea and the sentence imposed by a federal judge. |
| DirectnessDoes the source state the proposition or only discuss adjacent facts? | 19 | 20 | The release states the counts and the 12-year term directly. |
| CorroborationDo independent records support the same material point? | 13 | 15 | The plea release, the original charges and press reports agree. |
| Procedural accuracyDoes the record settle the procedural state the claim describes? | 12 | 15 | Sentence imposed after a guilty plea, with a collateral motion to vacate pending. |
| CurrencyHas the record been checked against later developments? | 10 | 10 | Checked against the motion to vacate and the August 2026 opposition. |
| ReproducibilityCan a reader locate the passage and repeat the assessment? | 10 | 10 | The DOJ releases are public on justice.gov. |
| Total | 93 | 100 |
Timeline
Related cases
- United States v. Alexander MashinskyUS District Court for the Southern District of New York. Criminal. Not published.Stage: Convicted by guilty plea and sentenced. Motion to vacate pendingS9.
Responses
- Alexander Mashinsky, May 2026: He moved to vacate his sentence on ineffective counsel grounds, saying of his lawyers, 'they stopped communication with me so I had no choice.'S8
Revision history
- Assessment first published with label Supported.
Have a record that changes this assessment? See corrections and responses.
Sources
- S1Tier A Founder Of Celsius Sentenced To 12 Years For Fraud And Market ManipulationUS Attorney's Office, Southern District of New York. Government press release. 8 May 2025.Supports the 12-year sentence, the counts and the forfeiture. It does not resolve the later motion to vacate.
- S2Tier A Celsius Founder And Former CEO Alexander Mashinsky Pleads Guilty To Multi-Billion Dollar Fraud And Market Manipulation SchemesUS Attorney's Office, Southern District of New York. Government press release. 3 December 2024.Supports the guilty plea to commodities fraud and securities fraud and the CEL price support using customer money.
- S3Tier A Celsius Founder And Former Chief Revenue Officer Charged In Connection With Multibillion-Dollar Fraud And Market Manipulation SchemesUS Attorney's Office, Southern District of New York. Government press release. 13 July 2023.Sets out the seven original counts and quotes internal messages on CEL. These were allegations at the time of charging.
- S9Tier C Federal prosecutors blast ex-Celsius CEO's motion to vacate as 'without merit'Cointelegraph. Press report. 18 August 2026.Reports the prosecutors' opposition filing of 14 August 2026 and that the judge had not yet ruled. Press source for the current procedural state.
- S8Tier C Celsius founder Alex Mashinsky files motion to vacate sentenceCointelegraph. Press report. 29 May 2026.Reports Mashinsky's motion to vacate on ineffective counsel grounds. Used for the collateral challenge, not for the underlying conviction.
Other claims about Celsius Network LLC
- Supported90The SEC and the US Department of Justice said Celsius and Mashinsky manipulated the price of the CEL token through undisclosed buybacks funded in part with customer money.Regulator statement, 13 July 20233 records citedMarket conduct
- Partly supported85The FTC alleged that Celsius falsely told customers their deposits were safe, that the platform was safer than a bank, and that it held a US$750 million insurance policy for deposits.Regulator statement, 20 July 20263 records citedProduct claims
- Supported74Celsius said it emerged from Chapter 11 bankruptcy on 31 January 2024 after freezing customer withdrawals in 2022.Company statement, 27 March 20242 records citedCorporate status