Celsius founder and former CEO Alex Mashinsky has been sentenced to a 12-year prison term for misleading investors about the company’s operations. Mashinsky had pleaded guilty to two counts of fraud related to the platform’s collapse, which led to losses exceeding $1 billion for customers. The restructuring of Celsius under a creditor-owned Bitcoin mining company, Ionic Digital LLC, continues as part of efforts to repay creditors. 100% of Celsius’ assets were transferred to this new company in June 2023. The court’s decision on Mashinsky’s sentence was made after the federal prosecutor sought a harsher penalty, concluding that his actions warrant a more significant punishment. Despite the financial losses, Mashinsky had already agreed to forfeit $48 million and could face up to 30 years in prison based on his plea deal. The sentencing follows a tumultuous period for the crypto market, which was severely impacted by the collapse of Terra Luna and FTX in 2022, prompting increased regulatory scrutiny and investor protection measures.