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Former Celsius CEO Alex Mashinsky has been sentenced to 12 years in prison for defrauding customers through misleading investment claims and market manipulation. The case highlights the risks and regulatory scrutiny surrounding crypto lending platforms.
- Mashinsky misled investors by falsely promoting Celsius as a safe alternative to banks while hiding its financial troubles.
- He artificially inflated CEL's value to sell personal holdings at higher prices, profiting $42 million.
- Celsius's 2022 bankruptcy led to regulatory probes and lawsuits, intensifying scrutiny of crypto lending practices.
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