{{Short description|Israeli-American businessman (born 1965)}} {{Infobox person | name = Alex Mashinsky | native_name = Алекс Машински | native_name_lang = ru | image = 2021 - Centre Stage PO1 0057 (51654289843).jpg | caption = Mashinsky in 2021 | birth_name = Alexander Mashinsky | birth_date = {{Birth year and age|1965|10}}<ref>https://find-and-update.company-information.service.gov.uk/officers/L05LqZwVMcPDCMMYuFscavtcqVA/appointments</ref><!--{{Birth year and age|1965}}<ref>{{cite web |url=https://www.justice.gov/usao-sdny/pr/celsius-founder-and-former-chief-revenue-officer-charged-connection-multibillion |title=Celsius Founder And Former Chief Revenue Officer Charged In Connection With Multibillion-Dollar Fraud And Market Manipulation Schemes |last= |first= |author= |date=July 13, 2023 |website= |publisher=United States District Court for the Southern District of New York |language= |access-date= |quote=Alex Mashinsky's age is stated as 57 years old in the press release published on July 13, 2023 by the United States District Court for the Southern District of New York.}}</ref>--> | birth_place = Ukrainian SSR, Soviet Union | citizenship = Israel, United States | occupation = Entrepreneur, CEO | employer = Celsius Network | criminal_charges = {{plainlist| * Commodities fraud * Securities fraud}} | criminal_penalty = 12 years in federal prison | spouse = Krissy Meehan | criminal_status = Incarcerated at FCI, Fort Dix<ref>{{Cite web |title=Inmate Locator |url=https://www.bop.gov/inmateloc/ |access-date=2025-10-12 |website=www.bop.gov}}</ref> | children = 6 | website = {{URL|https://www.mashinsky.com/}} }}
'''Alexander Mashinsky''' ({{Langx|ru|Алекс Машински}}; born October 1965) is an Israeli-American entrepreneur, business executive and fraudster.<ref>[https://www.ft.com/content/f53d9f5d-e690-4dce-b816-214a83452647 Celsius founder Alex Mashinsky pleads guilty in fraud case] - Financial Times, 4 December 2024</ref> He is a cofounder and former CEO of Celsius Network, a bankrupt cryptocurrency lending platform.<ref name="benzinga">{{cite web |title=Celsius CEO Says Bitcoin May Crash Ahead Of Massive Rally, Ethereum Heading To New All-Time High |first=Bibhu |last=Pattnaik |date=January 30, 2022 |url=https://www.benzinga.com/markets/cryptocurrency/22/01/25297857/celsius-ceo-says-bitcoin-may-crash-ahead-of-massive-rally-ethereum-heading-to-new-all-time |work=Benzinga |accessdate=22 April 2022 |archive-date=28 April 2022 |archive-url=https://web.archive.org/web/20220428050125/https://www.benzinga.com/markets/cryptocurrency/22/01/25297857/celsius-ceo-says-bitcoin-may-crash-ahead-of-massive-rally-ethereum-heading-to-new-all-time |url-status=live }}</ref><ref name="WSJBankruptcy">{{Cite web |first1=Alexander |last1=Gladstone |first2=Vicky |last2=Huang |first3=Soma |last3=Biswas |date=July 14, 2022 |title=Crypto Crash Drags Lender Celsius Network Into Bankruptcy |url=https://www.wsj.com/articles/crypto-crash-drags-lender-celsius-network-into-bankruptcy-11657758483 |work=The Wall Street Journal |access-date=July 14, 2022 |archive-date=August 26, 2022 |archive-url=https://web.archive.org/web/20220826013525/https://www.wsj.com/articles/crypto-crash-drags-lender-celsius-network-into-bankruptcy-11657758483 |url-status=live }}</ref>
In the early 1990s, Mashinsky founded VoiceSmart, one of the first firms to offer telecommunications switches to handle ordinary voice as well as Voice over IP call routing.<ref name="crowdfundinsider">{{cite web | url = https://www.crowdfundinsider.com/2020/08/164920-alex-mashinsky-from-celsius-network-argues-that-the-ethereum-based-lending-platform-is-better-than-its-defi-competitors/ | work = Crowdfund Insider | title = Alex Mashinsky from Celsius Network Argues that the Ethereum based Lending Platform Is Better than its DeFi Competitors | date = August 4, 2020 | first = Omar | last = Faridi | access-date = 22 April 2022 | archive-date = 18 February 2022 | archive-url = https://web.archive.org/web/20220218210207/https://www.crowdfundinsider.com/2020/08/164920-alex-mashinsky-from-celsius-network-argues-that-the-ethereum-based-lending-platform-is-better-than-its-defi-competitors/ | url-status = live }}</ref> Mashinsky founded GroundLink in 2004 as a service to book on-demand limousines and car services from a computer or smartphone.<ref name="Garmhausen 2018" /> He also founded Q-Wireless, which later became part of Transit Wireless.<ref name="Kolodny 2018"/> From 2014 to 2015, Mashinsky was CEO of Novatel.<ref name = channelfutures>{{cite web |url=https://www.channelfutures.com/mobility-wireless/novatel-wireless-appoints-alex-mashinsky-as-permanent-ceo |work=Channel Futures |first=Dan |last=Kobialka |date=November 7, 2014 |title=Novatel Wireless Appoints Alex Mashinsky as Permanent CEO |accessdate=22 April 2022 |archive-date=29 November 2021 |archive-url=https://web.archive.org/web/20211129174404/https://www.channelfutures.com/mobility-wireless/novatel-wireless-appoints-alex-mashinsky-as-permanent-ceo |url-status=live }}</ref>
Mashinsky is the defendant in a civil lawsuit brought in January 2023 by the Attorney General of New York, who accuses him of securities fraud while CEO of Celsius.<ref name="CNBCNYAG" /> On July 13, 2023, the Securities and Exchange Commission charged Mashinsky and Celsius with violating federal security laws.<ref>{{Cite web |title=SEC.gov {{!}} SEC Charges Celsius Network Limited and Founder Alex Mashinsky with Fraud and Unregistered Offer and Sale of Securities |url=https://www.sec.gov/news/press-release/2023-133 |access-date=2023-11-03 |website=www.sec.gov}}</ref> On the same day, he was indicted and arrested by federal authorities in the Southern District of New York for alleged fraud and market manipulation.<ref name="mashinskyarrest">{{cite web |title=Alex Mashinsky, Ex-CEO of Bankrupt Celsius, Arrested Thursday |url=https://www.bloomberg.com/news/articles/2023-07-13/sec-files-lawsuit-against-celsius-network-alex-mashinsky |website=Bloomberg News |access-date=13 July 2023}}{{Subscription required}}</ref><ref name=DOJ>{{Cite web |date=2023-07-13 |title=Celsius Founder And Former Chief Revenue Officer Charged In Connection With Multibillion-Dollar Fraud And Market Manipulation Schemes |url=https://www.justice.gov/usao-sdny/pr/celsius-founder-and-former-chief-revenue-officer-charged-connection-multibillion |access-date=2023-11-03 |publisher=U.S. Department of Justice |language=en}}</ref> Mashinsky pleaded guilty to one count of commodities fraud and one count of securities fraud, and was sentenced to twelve years imprisonment.<ref name="BloombergFraud">{{Cite news |last=Dolmetsch |first=Chris |date=May 8, 2025 |title=Celsius Founder Mashinsky Gets 12 Years for Crypto Fraud |url=https://www.bloomberg.com/news/articles/2025-05-08/celsius-founder-alex-mashinsky-gets-12-years-for-crypto-fraud |access-date=May 8, 2025 |work=Bloomberg}}</ref>
== Early life == Alexander Mashinsky<ref name=DOJ /> was born in 1965 in the Soviet Union to a Jewish family. His family obtained permission to leave the country in the 1970s<ref name="WSJMashinsky">{{cite news |last1=Fanelli |first1=James |last2=Huang |first2=Vicky Ge |title=Before Crypto Lender Celsius Crashed, CEO Alex Mashinsky Was Known for Big Ideas and Battles |url=https://www.wsj.com/articles/before-crypto-lender-celsius-crashed-ceo-alex-mashinsky-was-known-for-big-ideas-and-battles-11659787202?mod=e2fb |access-date=August 9, 2022 |work=The Wall Street Journal |date=August 6, 2022 |archive-date=August 8, 2022 |archive-url=https://web.archive.org/web/20220808181014/https://www.wsj.com/articles/before-crypto-lender-celsius-crashed-ceo-alex-mashinsky-was-known-for-big-ideas-and-battles-11659787202?mod=e2fb |url-status=live }}</ref> and later moved to Israel.<ref name="Garmhausen 2018">{{Cite news|url=http://www.crainsnewyork.com/gallery/20100501/FEATURES/501009995/3|title=GroundLink - Top Entrepreneurs 2010|last=Garmhausen|first=Steve|date=2010|work=Crain's New York Business|access-date=2018-03-30|archive-date=2017-12-10|archive-url=https://web.archive.org/web/20171210232032/http://www.crainsnewyork.com/gallery/20100501/FEATURES/501009995/3|url-status=live}}</ref><ref name="Guth 2000" /> From an early age, he was a tinkerer, like his father, and would tap into and use public phone lines in Israel.<ref name="Guth 2000">{{Cite news|url=http://thestandard.com:80/article/display/0,1151,3219,00.html|title=Bandwidth Merchant?|last=Guth|first=Rob|date=January 25, 1999|work=The Industry Standard|access-date=March 30, 2018|archive-url=https://web.archive.org/web/20000818233151/http://thestandard.com/article/display/0,1151,3219,00.html|archive-date=2000-08-18|url-status=dead}}</ref> As a teenager, he bought confiscated goods from Ben Gurion Airport at auction and resold them for a profit.<ref name="ReutersMcCrank" />
Mashinsky attended a few universities where he majored in electrical engineering but did not graduate. He served in the Israeli Army, where he trained as a pilot and served in the Golani Brigade, from 1984 to 1987.<ref name="ReutersMcCrank" /><ref name="Guth 2000" /> In 1988, he moved to the United States.<ref name="Light 2000">{{Cite journal|last1=Light|first1=Jay O.|last2=Green|first2=Daniel J.|date=2000-07-21|title=Arbinet Communications, Inc. (A)|url=https://www.hbs.edu/faculty/Pages/item.aspx?num=27338|journal=Harvard Business School Case Collection|publisher=Harvard Business School|edition=January 2001|issue=Case 201-006|pages=4–5|access-date=2018-04-09|archive-date=2019-10-01|archive-url=https://web.archive.org/web/20191001053950/https://www.hbs.edu/faculty/Pages/item.aspx?num=27338|url-status=live}}</ref><ref name="Garmhausen 2018" /><ref name="ReutersMcCrank">{{cite news |last1=Mccrank |first1=John |last2=Lang |first2=Hannah |title=Who is Alex Mashinsky, the man behind the alleged Celsius crypto fraud? |url=https://www.reuters.com/technology/who-is-alex-mashinsky-man-behind-alleged-celsius-crypto-fraud-2023-01-05/ |access-date=March 19, 2023 |work=Reuters |date=January 5, 2023 |language=en}}</ref>
== Career ==
Mashinsky has worked in several industries, often focusing on popular technologies. The ''Wall Street Journal'' described him in 2022 as "a brash, confident serial entrepreneur with a constant stream of big ideas". On several occasions, Mashinsky left his companies after conflict or tension.<ref name="WSJMashinsky" />
After relocating to New York City, Mashinsky ran a business trading contracts for delivery of chemicals such as urea, gold, and sodium cyanide. However, after the Tiananmen Square protests of 1989, the business slowed as exports of sodium cyanide from China fizzled. Mashinsky then worked at A+ Systems, a computer-based voicemail software company for phone carriers.<ref name="Guth 2000" />
===Telecommunications companies===
Mashinsky was an early developer of voice over Internet Protocol (VOIP).<ref>{{Cite news|url=https://www.bloomberg.com/news/articles/2018-05-02/a-verbal-cryptobrawl-breaks-out-at-milken-over-bitcoin-s-future|title=A Verbal Cryptobrawl Breaks Out at Milken Over Bitcoin's Future|last=Leising|first=Matthew|date=2018-05-02|work=Bloomberg|access-date=2018-05-04|language=en|archive-date=2018-05-04|archive-url=https://web.archive.org/web/20180504093352/https://www.bloomberg.com/news/articles/2018-05-02/a-verbal-cryptobrawl-breaks-out-at-milken-over-bitcoin-s-future|url-status=live}}</ref><ref name="Surden 2018">{{Cite news|url=http://www.nj.com/hobokennow/index.ssf/2012/03/transit_wireless_founder_advis.html|title=Transit Wireless founder advises entrepreneurs at NJ Tech Meetup to take personality test|last=Surden|first=Esther|date=March 26, 2012|work=The Jersey Journal|access-date=April 9, 2018|language=en-US|archive-date=April 10, 2018|archive-url=https://web.archive.org/web/20180410073340/http://www.nj.com/hobokennow/index.ssf/2012/03/transit_wireless_founder_advis.html|url-status=live}}</ref> In the early 1990s, he founded VoiceSmart, one of the first companies to offer computer-based VOIP phone service.<ref name="Light 2000" /> By 1993, Mashinsky had realized the potential for a commodity market for international telephone capacity.<ref>{{Cite magazine|url=https://www.economist.com/special-report/1997/09/11/down-with-distance|title=Down with distance|date=September 11, 1997|magazine=The Economist|language=en|access-date=2018-04-09|archive-date=2018-04-10|archive-url=https://web.archive.org/web/20180410072421/https://www.economist.com/node/599143|url-status=live}}</ref> So, in 1996, Mashinsky founded Arbinet, a marketplace for VoIP telephone service.<ref name="Light 2000" /><ref name="Garmhausen 2018" /> The platform was one of the first to allow telecommunication companies to trade minutes.<ref name="Schiesel 2018">{{Cite news|url=https://www.nytimes.com/1999/07/11/business/jumping-off-the-bandwidth-wagon.html|title=Jumping Off the Bandwidth Wagon|last=Schiesel|first=Seth|date=1999-07-11|work=The New York Times|access-date=2018-03-30|language=en-US|issn=0362-4331|archive-date=2020-10-30|archive-url=https://web.archive.org/web/20201030042154/https://www.nytimes.com/1999/07/11/business/jumping-off-the-bandwidth-wagon.html|url-status=live}}</ref> In November 1997, Arbinet began offering a similar service for data connectivity, allowing the more than 400 T1 lines connected to its New York hub to exchange their unused bandwidth.<ref name="McDonald 2003">{{Cite news|url=http://business2.com:80/articles/mag/0,1640,12954,00.html|title=Fast Times on the Minute Exchange|last=McDonald|first=Glenn|date=April 1999|work=Business 2.0|access-date=April 9, 2018|archive-url=https://web.archive.org/web/20030611100038/http://business2.com/articles/mag/0,1640,12954,00.html|archive-date=2003-06-11|url-status=dead}}</ref>
In 2005, he sold his stake in Arbinet and used part of the profits to start GroundLink.<ref name="Garmhausen 2018" /> The company allowed people to book limousine and car service from a smartphone or computer.<ref>{{Cite news|url=http://www.crainsnewyork.com/article/20100926/SMALLBIZ/309269970|title=Ground-transport firm flying high|last=Zimmerman|first=Eilene|date=September 26, 2010|work=Crain's New York Business|access-date=2018-04-09|archive-date=2017-04-18|archive-url=https://web.archive.org/web/20170418082519/https://www.crainsnewyork.com/article/20100926/SMALLBIZ/309269970|url-status=live}}</ref> Mashinsky was inspired to start the company after a car he reserved for himself and his wife did not pick them up, along with a business associate he was trying to impress, from the airport.<ref name="Garmhausen 2018" /> In 2010, Mashinsky organized a joint venture between GroundLink and several limousine and car service companies. These companies with LimoRes Car & Limo Service, a company Mashinsky also founded, installed free Wi-Fi service funded solely by sales of advertising.<ref>{{Cite news|url=https://www.wsj.com/articles/SB10001424052748704499604575407773797744474|title=Coming Soon to City, Wi-Fi on the Go|last=Grossman|first=Andrew|date=2010-08-04|work=The Wall Street Journal|access-date=2018-04-09|language=en-US|issn=0099-9660|archive-date=2018-04-10|archive-url=https://web.archive.org/web/20180410135810/https://www.wsj.com/articles/SB10001424052748704499604575407773797744474|url-status=live}}</ref> He also partnered with Gogo Inflight Internet to offer complimentary in-flight WiFi passes to travelers who booked a GroundLink limousine while aboard a US flight.<ref name="Kolodny 2018">{{Cite web|url=https://techcrunch.com/2010/08/10/free-wifi-gogo-groundlink/|title=Gogo and Groundlink's Partnership, Free Inflight Internet Deal|last=Kolodny|first=Lora|date=August 10, 2010|website=TechCrunch|access-date=2018-04-09|archive-date=2017-07-05|archive-url=https://web.archive.org/web/20170705102521/https://techcrunch.com/2010/08/10/free-wifi-gogo-groundlink/|url-status=live}}</ref>
Mashinsky's company Q-Wireless is one of four companies that constituted Transit Wireless, a joint venture to install wireless cellphone and free Wi-Fi internet service in the New York City Subway system.<ref name="Donohue 2018">{{Cite news|url=http://www.nydailynews.com/new-york/subway-tunnels-not-stations-set-wi-fi-cell-signals-article-1.468634|title=Subway tunnels set to get Wi-Fi, cell signals|last=Donohue|first=Pete|date=July 30, 2010|work=New York Daily News|access-date=2018-04-09|archive-date=2018-04-10|archive-url=https://web.archive.org/web/20180410072816/http://www.nydailynews.com/new-york/subway-tunnels-not-stations-set-wi-fi-cell-signals-article-1.468634|url-status=live}}</ref> It took Mashinsky three years to convince the MTA to determine if there was a demand for cell phone service inside the subway system, and two more years for the authority to request a proposal.<ref name="Surden 2018" /> By 2010,<ref name="Donohue 2018" /> his company had received a contract to install the service at 277 below-ground subway stations in New York City.<ref name="Surden 2018" />
In April 2014, Mashinsky was named to the board of directors of Novatel, a provider of Wi-Fi hotspot products.<ref>{{Cite news|url=http://www.sandiegouniontribune.com/business/technology/sdut-Novatel-Wireless-shareholders-settlement-proxy-2014apr29-story.html|title=Novatel Wireless settles shareholder spat|last=Freeman|first=Mike|date=April 29, 2014|work=The San Diego Union-Tribune|access-date=2018-04-09|archive-date=2018-04-10|archive-url=https://web.archive.org/web/20180410072236/http://www.sandiegouniontribune.com/business/technology/sdut-Novatel-Wireless-shareholders-settlement-proxy-2014apr29-story.html|url-status=live}}</ref> He was appointed CEO in June of that year.<ref>{{Cite news|url=https://www.sdbj.com/news/2014/dec/04/return-roots/|title=Return to Roots|last=Graves|first=Brad|date=December 4, 2014|work=San Diego Business Journal|access-date=2018-04-09|archive-date=2020-08-12|archive-url=https://web.archive.org/web/20200812232015/http://www.sdbj.com/news/2014/dec/04/return-roots/|url-status=live}}</ref><ref>{{Cite news|url=http://www.sandiegouniontribune.com/business/technology/sdut-Novatel-Wireless-activist-shareholders-Mashinsky-2014jun13-story.html|title=Shareholders push out Novatel CEO|last=Freeman|first=Mike|date=June 13, 2014|work=The San Diego Union-Tribune|access-date=2018-04-09|archive-date=2018-04-10|archive-url=https://web.archive.org/web/20180410134630/http://www.sandiegouniontribune.com/business/technology/sdut-Novatel-Wireless-activist-shareholders-Mashinsky-2014jun13-story.html|url-status=live}}</ref> In October 2015, Mashinsky left his position at Novatel after a year and a half as CEO of the company.<ref>{{Cite news|url=http://www.sandiegouniontribune.com/business/sdut-novatel-wireless-mifi-mashinsky-swenson-falcone-2015oct29-story.html|title=Novatel Wireless fires CEO, names replacement|last=Freeman|first=Mike|date=October 29, 2015|work=The San Diego Union-Tribune|access-date=2018-04-09|archive-date=2018-04-10|archive-url=https://web.archive.org/web/20180410072150/http://www.sandiegouniontribune.com/business/sdut-novatel-wireless-mifi-mashinsky-swenson-falcone-2015oct29-story.html|url-status=live}}</ref> In a 2018 deposition, Mashinsky said he was terminated from his post because he refused to move from New York to Novatel's San Diego headquarters.<ref name="WSJMashinsky" />
RTX, a London-based financial technology firm in the telecom industry, hired Mashinsky as Global CEO in September 2016.<ref name="TelecomRTX">{{cite news |last1=Ralls |first1=Amy |title=Alex Mashinsky Joins RTX to Fuel Global Growth |url=https://telecomreseller.com/2016/09/15/alex-mashinsky-joins-rtx-to-fuel-global-growth/ |access-date=August 9, 2022 |work=Telecom Reseller |date=September 16, 2016 |archive-date=August 10, 2022 |archive-url=https://web.archive.org/web/20220810050936/https://telecomreseller.com/2016/09/15/alex-mashinsky-joins-rtx-to-fuel-global-growth/ |url-status=live }}</ref> After six months in the role, following a dispute with management, Mashinsky left the company, according to his 2018 deposition.<ref name="WSJMashinsky" />
=== Celsius Network === In 2017, Mashinsky founded Celsius Network, a borrowing and lending platform for digital assets like Bitcoin, Ethereum and other cryptocurrencies.<ref name="venturebeat">{{Cite news|url=https://venturebeat.com/2017/10/10/celsius-is-using-blockchain-technology-to-disrupt-the-1-1-trillion-consumer-credit-industry/|title=Celsius aims to disrupt the consumer credit industry using blockchain|last=Rogers|first=Stewart|date=2017-10-10|work=VentureBeat|access-date=2018-04-09|archive-date=2020-11-12|archive-url=https://web.archive.org/web/20201112015221/https://venturebeat.com/2017/10/10/celsius-is-using-blockchain-technology-to-disrupt-the-1-1-trillion-consumer-credit-industry/|url-status=live}}</ref><ref name="WSJCFO">{{cite news | url = https://www.wsj.com/articles/crypto-lending-company-celsius-names-new-cfo-11645213196 | work = The Wall Street Journal | title = Crypto Lending Company Celsius Names New CFO | accessdate = 22 April 2022 | archive-date = 15 March 2022 | archive-url = https://web.archive.org/web/20220315000351/https://www.wsj.com/articles/crypto-lending-company-celsius-names-new-cfo-11645213196 | url-status = live }}</ref> It encouraged its customers to "unbank" themselves and offered interest rates as high as 18.6 per cent on cryptocurrency deposits.<ref>{{cite news |last1=MacColl |first1=Margaux |title=Crypto Wants Its Cash Back: Inside the Small but Mighty Legal Crusade to Win Back Lost Savings |url=https://www.theinformation.com/articles/the-crypto-mob-grabs-its-pitchforks-inside-the-legal-crusade-to-win-back-investors-lost-cash |work=The Information |date=8 July 2022 |access-date=30 July 2022 |archive-date=30 July 2022 |archive-url=https://web.archive.org/web/20220730220311/https://www.theinformation.com/articles/the-crypto-mob-grabs-its-pitchforks-inside-the-legal-crusade-to-win-back-investors-lost-cash |url-status=live }}</ref>
As CEO, he hosted "Ask Mashinsky Anything", a weekly YouTube livestream in which he answered questions about Celsius. He became known for wearing T-shirts reading "Banks are not your friends", for his critical comments about unsuccessful businesses (including his own), and for publicity stunts such as an attempt to vandalize a branch of Chase Bank.<ref name="inside-celsius">{{Cite news|last=Shubber |first=Kadhim|last2=Oliver|first2=Joshua |date=13 July 2022|title=Inside Celsius: how one of crypto's biggest lenders ground to a halt |work=Financial Times |url=https://www.ft.com/content/4fa06516-119b-4722-946b-944e38b02f45 |access-date=4 May 2024|archive-date=16 July 2023 |archive-url=https://archive.today/20230716224635/https://www.ft.com/content/4fa06516-119b-4722-946b-944e38b02f45|url-status=dead|url-access=subscription }}</ref><ref name="FinancialHeat">{{cite news |last1=Oliver |first1=Joshua |last2=Shubber |first2=Kadhim |title=Alex Mashinsky, Celsius founder feeling the heat |url=https://www.ft.com/content/18b6fb80-44dd-40ed-b5ea-3f3bf2814c7d |access-date=21 April 2024 |work=Financial Times |date=17 June 2022 |archive-date=18 June 2022|archiveurl=https://archive.today/20220618143836/https://www.ft.com/content/18b6fb80-44dd-40ed-b5ea-3f3bf2814c7d|url-status=dead|url-access=subscription }}</ref>
In January 2022, Mashinsky took control of Celsius's trading strategy. Some insiders reported that he personally directed large individual cryptocurrency trades, overruling executives with significant financial experience.<ref>{{Cite news |date=16 August 2022|last=Shubber|first=Kadhim|title=Alex Mashinsky took control of Celsius trading strategy months before bankruptcy |work=Financial Times |url=https://www.ft.com/content/43d4fb5d-72a1-468c-aac8-9e11c4693f4e |access-date=4 May 2024|archive-date=5 May 2024 |archive-url=https://archive.today/20240505042033/https://www.ft.com/content/43d4fb5d-72a1-468c-aac8-9e11c4693f4e |url-status=dead|url-access=subscription }}</ref>
Mashinsky withdrew $10 million from Celsius in May 2022. The withdrawals came as customers were withdrawing assets in large quantities while the company was nearing bankruptcy, according to a report in October 2022. A spokesperson for Mashinsky told the ''Financial Times'' that the funds were used for tax payments and estate planning.<ref>{{Cite news |date=2022-10-03 |title=Celsius Network founder withdrew $10mn ahead of bankruptcy |work=Financial Times |url=https://www.ft.com/content/5f7c9eab-ca5f-4425-91be-5781313c9723 |access-date=2022-10-03 |archive-date=2022-10-02 |archive-url=https://web.archive.org/web/20221002224220/https://www.ft.com/content/5f7c9eab-ca5f-4425-91be-5781313c9723 |url-status=live }}</ref> In total, Arkham Intelligence estimates that Mashinsky sold $44 million worth of CEL tokens through exchanges.<ref name="inside-celsius" />
On July 13, 2022, one month after it paused customer withdrawals, Celsius filed for Chapter 11 bankruptcy.<ref name="WSJBankruptcy" /> Mashinsky said that "the Company made what, in hindsight, proved to be certain poor asset deployment decisions."<ref name="MashinskyPDF">{{Cite web |last=Mashinsky |first=Alex |date=July 14, 2022 |title=Declaration of Alex Mashinsky, Chief Executive Officer of Celsius Network LLC, in Support of Chapter 11 Petitions and First Day Motions |url=https://cases.stretto.com/public/x191/11749/PLEADINGS/1174907142280000000096.pdf |access-date=July 14, 2022 |archive-date=July 14, 2022 |archive-url=https://web.archive.org/web/20220714190312/https://cases.stretto.com/public/x191/11749/PLEADINGS/1174907142280000000096.pdf |url-status=live }}</ref><ref name="WSJBillion">{{cite news |last1=Biswas |first1=Soma |last2=Huang |first2=Vicky Ge |title=Celsius Owes Users More Than $4.7 Billion |url=https://www.wsj.com/articles/celsius-owes-users-more-than-4-7-billion-11657841826 |access-date=July 15, 2022 |work=The Wall Street Journal |date=July 15, 2022 |archive-date=September 1, 2022 |archive-url=https://web.archive.org/web/20220901223136/https://www.wsj.com/articles/celsius-owes-users-more-than-4-7-billion-11657841826 |url-status=live }}</ref>
Mashinsky resigned as Celsius CEO on September 27, 2022. Chris Ferraro, the former CFO of Celsius, was appointed to replace him as interim CEO. The Unsecured Creditors Committee, an organization of depositors, described the executive change as "a positive step" toward resolving the cases against Celsius.<ref name="CNBCResign">{{cite news |last1=Capoot |first1=Ashley |last2=Rooney |first2=Kate |last3=Tortorelli |first3=Paige |title=Celsius CEO resigns in the middle of bankruptcy proceedings |url=https://www.cnbc.com/2022/09/27/celsius-ceo-resigns-in-the-middle-of-bankruptcy-proceedings.html |access-date=September 27, 2022 |work=CNBC |date=September 27, 2022 |archive-date=September 27, 2022 |archive-url=https://web.archive.org/web/20220927153849/https://www.cnbc.com/2022/09/27/celsius-ceo-resigns-in-the-middle-of-bankruptcy-proceedings.html |url-status=live }}</ref>
==Legal issues== === Civil lawsuits === On January 5, 2023, the Attorney General of New York filed a civil lawsuit against Mashinsky, accusing him of violating the state's Martin Act by committing securities fraud. Letitia James's office seeks a fine against Mashinsky, monetary damages, and a ban that would prevent him from leading a company or working in the securities industry in New York.<ref name="CNBCNYAG">{{Cite web |last=Goswami |first=Rohan |title=New York AG accuses Celsius ex-CEO of defrauding crypto investors |url=https://www.cnbc.com/2023/01/05/new-york-ag-accuses-celsius-ex-ceo-of-defrauding-crypto-investors.html |access-date=2023-01-05 |website=CNBC |date=5 January 2023 |language=en |archive-date=2023-01-05 |archive-url=https://web.archive.org/web/20230105160922/https://www.cnbc.com/2023/01/05/new-york-ag-accuses-celsius-ex-ceo-of-defrauding-crypto-investors.html |url-status=live }}</ref><ref name="MWFraud">{{cite news |last1=Alpert |first1=Lukas I. |title=New York attorney general files fraud suit against Celsius Network and its founder Alex Mashinsky |url=https://www.marketwatch.com/story/new-york-attorney-general-files-fraud-suit-against-celsius-network-and-its-founder-alex-mashinsky-11672934579?siteid=yhoof2 |access-date=January 5, 2023 |work=MarketWatch |date=January 5, 2023 |language=EN-US |archive-date=January 6, 2023 |archive-url=https://web.archive.org/web/20230106032855/https://www.marketwatch.com/story/new-york-attorney-general-files-fraud-suit-against-celsius-network-and-its-founder-alex-mashinsky-11672934579?siteid=yhoof2 |url-status=live }}</ref>
On January 31, 2023, Shoba Pillay, a court-appointed examiner and a former federal prosecutor, filed a 470-page report on Celsius (with an additional 200 pages of appendices) with the bankruptcy court. Pillay's report, as interpreted by Molly White, described "blatant fraud" by Mashinsky during his time as CEO. The report was particularly critical of the weekly "Ask Mashinsky Anything" livestreams, which were later edited and published as videos on demand.<ref name="MollyNews">{{cite news |last1=White |first1=Molly |date=February 2, 2023 |title=The Celsius examiner's report: a picture of fraud and incompetence |url=https://newsletter.mollywhite.net/p/the-celsius-examiners-report-a-picture |access-date=March 19, 2023 |work=Molly White's Newsletter |language=en}}</ref>
The Pillay report also noted that Mashinsky did not personally read Celsius's terms of use, and made many public statements which contradicted the terms. Mashinsky repeatedly claimed that Celsius's CEL token was "registered" with the SEC, when it was not. The report described Mashinsky as personally intervening in key decisions such as Celsius's reward amounts, and stated that he personally benefited from selling CEL tokens, whose value Celsius pumped at his direction.<ref name="MollyNews" /> Although Mashinsky told customers that the CEL token's value reflected the business's value, the Pillay report quoted internal conversations between employees who said that CEL should be valued at $0.<ref name="BloombergLender">{{cite news |last1=Kharif |first1=Olga |last2=Ossinger |first2=Joanna |last3=Nicolle |first3=Emily |date=January 31, 2023 |title=Celsius Examiner Rips Into Crypto Lender In Her Final Report |url=https://www.bloomberg.com/news/articles/2023-01-31/celsius-examiner-rips-into-crypto-lender-in-her-final-report |access-date=March 19, 2023 |work=Bloomberg |language=en}}</ref>
On July 13, 2023, Celsius Network agreed to a $4.7 billion settlement with the Federal Trade Commission (FTC). On the same day, Mashinsky was arrested and charged with committing securities, commodities, and wire fraud, and with committing securities manipulation and fraud charges.<ref name="CNBCSettle">{{cite news |last1=Goswami |first1=Rohan |title=Former Celsius CEO arrested, company agrees to pay $4.7 billion settlement |url=https://www.cnbc.com/2023/07/13/former-celsius-ceo-arrested-company-agrees-to-pay-4point7-billion-settlement.html |access-date=July 13, 2023 |work=CNBC |date=July 13, 2023 |language=en}}</ref>
=== Criminal conviction === On December 3, 2024, Mashinsky pleaded guilty to one count of commodities fraud and one count of securities fraud, and agreed to forfeit $48 million. On May 8, 2025, Mashinsky was sentenced to 12 years in prison.<ref>{{Cite news |last=Roth |first=Emma |date=2025-05-08 |title=Celsius founder Alex Mashinsky sentenced to 12 years in prison |url=https://www.theverge.com/news/663877/celsius-founder-alex-mashinsky-12-years-sentenced |access-date=2025-05-09 |work=The Verge}}</ref>
== Personal life == Prior to his incarceration, Mashinsky lived in New York City with his wife, Krissy Mashinsky (Kristine Meehan), and six children.<ref name="FinancialHeat"/> Krissy runs the online retailer usastrong.IO, which attracted controversy for selling shirts reading "Unbankrupt Yourself", a play on Celsius Network’s slogan "Unbank Yourself", after Celsius went bankrupt.<ref>{{Cite web |last=Bienasz |first=Gabrielle |date=2022-09-16 |title=Ex-Celsius CEO's Wife Selling 'Unbankrupt Yourself' T-Shirts |url=https://www.entrepreneur.com/business-news/celsius-ceos-wife-selling-unbankrupt-yourself-t-shirts/435508 |access-date=2022-09-29 |website=Entrepreneur |archive-date=2022-09-29 |archive-url=https://web.archive.org/web/20220929181040/https://www.entrepreneur.com/business-news/celsius-ceos-wife-selling-unbankrupt-yourself-t-shirts/435508 |url-status=live }}</ref>
== References == {{Reflist|2}}
==External links== * {{Official website|https://www.mashinsky.com/}}
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{{DEFAULTSORT:Mashinsky, Alex}} Category:1965 births Category:20th-century American businesspeople Category:20th-century Israeli military personnel Category:21st-century American businesspeople Category:American chief executives Category:American company founders Category:American Jews Category:American people convicted of fraud Category:American people of Ukrainian-Jewish descent Category:American businesspeople in technology Category:Israeli emigrants to the United States Category:Israeli Jews Category:Israeli people of Ukrainian-Jewish descent Category:Israeli soldiers Category:Jewish Israeli military personnel Category:Living people Category:Naturalized citizens of the United States Category:People associated with cryptocurrency Category:Soviet emigrants to Israel Category:Soviet Jews Category:Jewish American military personnel