By Larry Neumeister
NEW YORK (AP) — The founder and former CEO of Cryptocurrency Lending Platform celsius Network was sentenced to 12 years in prison Thursday after labeling vulnerable customers as “achieving hope.”
59-year-old Alexander Masski was declared by US District Judge John G. Kortle. He said that for those who have had a considerable term in prison engaged in a “very serious” crime, some of their clients lost everything and suffered serious psychological harm, but who pocketed more than $45 million.
Celsius declared bankruptcy in 2022, revealing dangerous financial bets in some of the $20 billion that thousands of customers poured into the company. He had promised that their money would be safe and secure in Celsius. Celsius has achieved status as a modern bank where crypto assets can earn profits.
The defense denounced the collapse of Celsius in the “tumultuous slump” of the cryptocurrency market in May and June 2022, saying in court documents that Maski’s “action was never predatory, exploitative, or Venald never acted.”
But U.S. lawyer Aide Allison Nichols put him as a financial predator and told a judge on Thursday that Machineski had deceived clients from the start by exaggerating momentum that exaggerated.
“He preyed on hope,” she said. “Machiski knew exactly what he was doing. I hope to sell these people.”
She said that no clients will be made entirely financially, regardless of the money they can recover through bankruptcy proceedings.
Before he was sentenced, Maskie apologized to his clients and sobbed several times in reference to his difficult past as his family was seven years old and was able to leave the small Ukrainian town of the former Soviet Union with help from the US.
The family moved to Israel, and Machineski served as a fighter pilot for the Israeli Defense Force for three years before coming to America.
“I had no intention of hurting anyone here after this country did it for me,” said Maski.
“I’m really sorry,” he said.
When he pleaded guilty in December, Maski admitted that investments were misleading between 2018 and 2022, creating profitability for Celsius and putting clients’ funds on mercy to private loans and undisclosed risky market bets.
His lawyer, Mark Mukassey, said the victim’s impact statement filed in court was “rather cruel” to his client.
“We hear how intense their pain is,” he said. “We all have our sympathy.”
Several victims spoke at the verdict hearing.
Cameron Cruz, who serves on the victims’ committee, said he sought a “severe sentence” and that nearly 250 victims died before justice was served or appropriately compensated for losses.
“A lot of people have been wiped out,” he said.
In a statement, US lawyer Jay Clayton said Maskie “made tens of millions of dollars while his clients were losing billions.”
He added: “American investors deserve better. The cases of tokenization and digital assets are strong, but that’s not a license to deceive. The rules against fraud still apply.”
Original release: May 8, 2025, 5:53pm EDT
