Federal prosecutors are urging a judge to impose the maximum 12-year prison sentence on Terra founder Do Kwon for his role in the $40 billion collapse of the UST and LUNA cryptocurrencies. The Department of Justice argues that a lighter sentence would create unfair disparities compared to the 25-year term given to FTX’s Sam Bankman-Fried. Kwon’s sentencing is scheduled for December 11 in Manhattan.
about DOJ Seeks 12-Year Prison Sentence for Terra Founder Do KwonAlex Mashinsky
0 posts last weekTether Settles Celsius Bankruptcy Claims for $299.5M
Stablecoin giant Tether has resolved its legal battle with the Celsius Network bankruptcy estate through a $299.5 million settlement, representing just 6.7% of the nearly $4.5 billion in Bitcoin originally sought by the failed crypto lender. The agreement concludes an adversary proceeding filed in August 2024 that alleged Tether improperly liquidated Bitcoin collateral before Celsius’s July 2022 bankruptcy. This resolution comes alongside the 12-year prison sentence handed to former Celsius CEO Alex Mashinsky for fraud and token manipulation, marking a significant chapter in the ongoing cleanup of one of crypto’s most spectacular collapses.
about Tether Settles Celsius Bankruptcy Claims for $299.5MEx-Celsius CEO Mashinsky Reports to Prison Friday
Alex Mashinsky, the former CEO of bankrupt crypto lender Celsius, will report to federal prison on Friday after pleading guilty to two felony counts related to false statements about the company’s Earn Program. The court has recommended he serve his sentence at the minimum-security Federal Prison Camp in Otisville, New York, located approximately 75 miles from New York City. Mashinsky is required to surrender to authorities by 2:00 pm ET on Friday, following documents filed after his sentencing hearing in the Southern District of New York. This development underscores the legal consequences facing executives in the crypto industry following high-profile failures and alleged misconduct.
about Ex-Celsius CEO Mashinsky Reports to Prison FridayJudge Allows Celsius’ $4.3B Lawsuit Against Tether to Proceed
A U.S. bankruptcy judge has ruled that Celsius Network’s $4.3 billion lawsuit against Tether can proceed, focusing on claims that the stablecoin issuer improperly sold nearly 40,000 BTC in June 2022. Celsius alleges Tether breached agreements by conducting a ‘fire sale’ of collateral without proper notice, resulting in over $4 billion in losses. Judge Martin Glenn dismissed some claims, including jurisdictional issues and allegations under British Virgin Islands law, but upheld others, such as potential breaches of collateral agreements. Tether has called the lawsuit ‘baseless,’ arguing Celsius authorized the sale. The case highlights the legal complexities of crypto collateral disputes and bankruptcy proceedings.
about Judge Allows Celsius' $4.3B Lawsuit Against Tether to ProceedCelsius Wins Ruling in $4B Lawsuit Against Tether
A U.S. bankruptcy judge has allowed Celsius to advance its $4 billion lawsuit against Tether, accusing the stablecoin issuer of improperly liquidating 39,500 Bitcoin (now worth ~$4B) held as collateral in 2022. Celsius claims Tether violated contractual terms, including a 10-hour waiting period before liquidation. The ruling underscores jurisdictional risks for offshore crypto firms, as U.S. courts may assert authority over cases involving U.S.-based communications or accounts. Separately, Celsius has distributed $2.5B to 251,000 creditors since January 2024, covering 93% of claims. The case could set a precedent for future crypto disputes involving cross-border contracts and liquidation terms.
about Celsius Wins Ruling in $4B Lawsuit Against TetherCelsius Founder Barred From Bankruptcy Claims After Fraud Conviction
Celsius founder Alex Mashinsky has been barred from receiving any assets from the bankrupt crypto lender’s estate after withdrawing his claims. Mashinsky was sentenced to 12 years in prison last month for commodities and securities fraud related to misleading investors about Celsius’ financial health. The DOJ accused him of falsely portraying Celsius as a safe platform while misusing customer funds, leading to billions in losses. Celsius filed for bankruptcy in 2022 after its CEL token crashed 99% and withdrawals were frozen. US authorities emphasized that fraud laws still apply in crypto, with the SDNY vowing to hold bad actors accountable.
about Celsius Founder Barred From Bankruptcy Claims After Fraud ConvictionMashinsky Forfeits Claims in Celsius Bankruptcy Case
Alex Mashinsky and his associated entities—AM Ventures Holdings Inc., Koala1 LLC, and Koala3 LLC—have surrendered any claims to Celsius’ bankruptcy estate under a court-approved agreement. The deal allows Celsius debtors to distribute funds previously contested by Mashinsky, prioritizing creditor restitution. The motion, filed in the U.S. Bankruptcy Court for the Southern District of New York, marks a pivotal step in resolving Celsius’ collapse, ensuring assets flow to affected users rather than its former leadership.
about Mashinsky Forfeits Claims in Celsius Bankruptcy CaseEx-Celsius CEO Gets 12 Years, Bitcoin Eyes $160K
The US federal court sentenced former Celsius CEO Alex Mashinsky to 12 years in prison for fraud, rejecting his legal team’s plea for leniency based on his clean record and military service. Prosecutors had sought a 20-year sentence, but betting markets predicted a lighter outcome. Meanwhile, a crypto analyst forecasts Bitcoin could reach $160,000 or higher, underscoring the volatile yet optimistic sentiment in the crypto market. The case serves as a stark reminder of the legal consequences facing industry figures amid regulatory scrutiny.
about Ex-Celsius CEO Gets 12 Years, Bitcoin Eyes $160KEx-Celsius CEO Gets 12 Years for $48M Crypto Fraud
Alex Mashinsky, the ex-CEO of bankrupt crypto lender Celsius Network, received a 12-year prison sentence for defrauding investors through false claims about the company’s stability and manipulating CEL token prices. Prosecutors revealed he pocketed $48 million while misleading retail investors, with federal authorities initially seeking a 20-year term. The case, tied to Celsius’s $4.7 billion FTC settlement, also saw the firm’s former revenue chief cooperate, exposing systemic fraud. Mashinsky forfeited ill-gotten gains and waived appeal rights under his plea deal, closing a high-profile prosecution that underscores regulatory scrutiny of crypto misconduct.
about Ex-Celsius CEO Gets 12 Years for $48M Crypto FraudCelsius Founder Gets 12 Years for Fraud, $7B Loss
Former Celsius CEO Alex Mashinsky received a 12-year prison sentence for orchestrating a massive fraud that led to $7B in investor losses. Prosecutors proved Mashinsky lied about Celsius’ financial health while funneling customer funds into high-risk bets, culminating in the platform’s 2022 bankruptcy. Victims testified about life-altering losses, with some dying before restitution. Though Celsius has repaid $127M to creditors, most face steep haircuts. The case sets a precedent for crypto accountability as Mashinsky faces additional civil suits, while speculation swirls about a potential Trump-era pardon following similar clemency for BitMEX founders.
about Celsius Founder Gets 12 Years for Fraud, $7B LossEx-Celsius CEO Gets 12 Years for Crypto Fraud
Alex Mashinsky, the ex-CEO of Celsius, was sentenced to 12 years in prison on May 8 for orchestrating a fraudulent scheme that misled investors about the platform’s risks and manipulated the price of its CEL token. Prosecutors sought a 20-year term, citing Mashinsky’s $42 million profit and the harm to Celsius users. The case, one of the most prominent in the 2022 crypto collapse, revealed deceptive practices, including inflated yields and hidden financial instability. Celsius filed for bankruptcy in July 2022, freezing withdrawals and triggering regulatory investigations. Mashinsky’s guilty plea in December 2023 included admissions of fraud and market manipulation, though he faces ongoing civil litigation related to Celsius’s bankruptcy.
about Ex-Celsius CEO Gets 12 Years for Crypto FraudEx-Celsius CEO Gets 12 Years for Fraud, Token Manipulation
Alex Mashinsky, the former CEO of Celsius Network, was sentenced to 12 years in prison on Thursday for commodities and securities fraud related to misusing customer funds and manipulating the CEL token’s price. Mashinsky had pleaded guilty to two charges in December 2024, though he initially faced seven counts. Prosecutors had recommended a 20-year sentence, while his defense argued for just over a year. Celsius collapsed in 2022 after freezing withdrawals, leaving customers with over $5 billion in losses. Creditor repayments are still ongoing.
about Ex-Celsius CEO Gets 12 Years for Fraud, Token Manipulation