Celsius Founder Alex Mashinsky Ordered to Pay $35 Million

Alex Mashinsky, the founder of the collapsed cryptocurrency lending platform Celsius, has been ordered to pay thirty-five million dollars in restitution to victims of the fraud that led to the platform's collapse.

The order follows a civil judgment that found Mashinsky personally liable for misleading investors about the safety of Celsius's products and the financial health of the company. Celsius filed for bankruptcy in July 2022 after halting withdrawals, leaving billions of dollars in customer funds trapped.

The thirty-five million dollar figure represents the amount that the court determined Mashinsky personally obtained through fraudulent conduct. The ruling does not affect the broader bankruptcy process, through which creditors are still awaiting the return of their funds.

Mashinsky had previously pleaded not guilty to criminal charges including securities fraud and market manipulation. The civil judgment is separate from those criminal proceedings.

The case has become one of the most closely watched legal actions in the crypto industry, and the outcome is likely to influence how courts treat personal liability for founders of collapsed crypto platforms.