Alexander Mashinsky, the former CEO of Celsius Network, has been sentenced to 12 years in prison after pleading guilty to two counts of fraud. This marks a significant downfall for Mashinsky, who once led a company touted as the "bank" of the crypto industry. Standing in the Manhattan Southern District court, Mashinsky faced U.S. District Judge John G. Koeltl, who handed down the sentence for what prosecutors called a broad scheme to defraud investors. Mashinsky's legal troubles began in 2023 when he was arrested on charges of securities, commodities, and wire fraud. This arrest coincided with a monumental $4.7 billion settlement that Celsius reached with the Federal Trade Commission, one of the largest settlements in the agency's history. The settlement highlighted the severe nature of the fraud, contingent on Celsius returning remaining customer assets during bankruptcy proceedings. Prosecutors alleged that Mashinsky misled investors regarding the safety and profitability of Celsius's yield-generating platform while secretly offloading tens of millions in personal holdings. Initially denying any wrongdoing, Mashinsky eventually pleaded guilty to commodities fraud and a scheme to manipulate the Celsius token in December. His guilty plea and subsequent sentencing conclude a lengthy legal battle also involving charges from the Securities and Exchange Commission and the Commodity Futures Trading Commission, which accused Mashinsky and Celsius of orchestrating a multi-billion dollar fraud scheme. Mashinsky's downfall echoes the fate of other prominent crypto executives, including Sam Bankman-Fried, Changpeng Zhao, and Do Kwon. Bankman-Fried, founder of FTX, was sentenced to 25 years in prison in March 2024 for massive fraud and conspiracy that led to the collapse of his cryptocurrency exchange and its associated hedge fund, Alameda Research. Known once as a crypto prodigy, Bankman-Fried was revealed to have misappropriated billions of dollars in customer funds for his trading firm and lavish lifestyle. His associate, Caroline Ellison, who led Alameda Research, received a lighter sentence of two years after cooperating with prosecutors, which was pivotal in uncovering the fraudulent operations at FTX. Other FTX executives faced varying consequences: Ryan Salame was sentenced to 90 months in prison, while engineering chief Nishad Singh and co-founder Gary Wang avoided jail time but received three years of supervised release. In a positive turn for FTX customers, the bankruptcy estate announced in May 2024 that almost all customers would recover their funds and more. A judge also dismissed most claims against celebrities like Tom Brady and Stephen Curry, who had promoted FTX, in a lawsuit filed by investors. Changpeng Zhao, known as "CZ" and the founder of Binance, struck a deal with the U.S. government in November 2023 to resolve a multiyear investigation into Binance. Although he stepped down as CEO, Zhao retained a significant stake in the company. In April 2024, Zhao was sentenced to four months in prison for enabling money laundering at Binance, serving his sentence in a low-security federal prison. Under new leadership, Binance shifted its strategy, aligning closely with pro-crypto policies under President Donald Trump's administration. CEO Richard Teng noted the improved regulatory environment in the U.S. as a "fantastic reset" for the cryptocurrency industry. Before the controversies surrounding Bankman-Fried and Zhao, Do Kwon of Terraform Labs was considered a major antagonist in the crypto world. In May 2022, Kwon's U.S. dollar-pegged stablecoin collapsed, causing a $40 billion loss in market value and triggering the downfall of several crypto companies, including Three Arrows Capital, Voyager Digital, and BlockFi. Kwon's stablecoin was not backed by traditional assets but rather a complex algorithm, which failed spectacularly, leading to substantial investor losses and a broader crisis of confidence in the crypto sector. In June of the following year, Kwon reached a $4.5 billion settlement with the U.S. Securities and Exchange Commission and was extradited from Montenegro to the U.S. in January 2025 to face fraud charges. The collapse of Kwon's stablecoin project had far-reaching consequences, contributing to the bankruptcy of Three Arrows Capital and its inability to meet margin calls from lenders. As a result, many counterparties, including retail investors promised high returns, faced severe financial distress. The companies involved are now navigating their bankruptcy settlements, with Celsius recently emerging from bankruptcy proceedings. Despite the chaos, some individuals have managed to evade severe repercussions. Kyle Davies