Tag: Alex mashinsky

In May 2025, former Celsius Network CEO Alex Mashinsky was sentenced to 12 years in prison after pleading guilty to fraud, marking a culmination of the immense controversy with Celsius. The company, which once managed billions in customer deposits, collapsed spectacularly due to gross mismanagement, market manipulation, and undisclosed risks. This article explores the fraudulent practices that led to the crypto lender's downfall and the devastating consequences for its customers.

In 2023, Celsius Holdings settled a consumer class action lawsuit over its 'no preservatives' label, just one example of the complex legal battles associated with the name Celsius. Answering the question, why is CELSIUS getting a lawsuit, requires a careful separation of two completely different companies with the same moniker.

In July 2022, cryptocurrency lending platform Celsius filed for Chapter 11 bankruptcy, holding approximately $4.7 billion in digital assets belonging to its 1.7 million registered users. This came after the company abruptly froze all customer withdrawals, trapping billions of dollars in funds. The primary issue with Celsius was a deeply flawed business model built on false promises, undisclosed risks, and eventual fraudulent activity by its leadership.