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Overview
Israeli-American entrepreneur and founder/CEO of Celsius Network, a cryptocurrency lending platform that collapsed in June 2022 owing approximately $4.7 billion to 1.7 million depositors. Mashinsky promoted Celsius as safer than banks while secretly using customer funds for risky, unauthorized trades. He personally withdrew $44 million in crypto assets weeks before halting customer withdrawals and filing for bankruptcy. Charged with securities fraud, commodities fraud, and wire fraud by DOJ and SEC in 2023. Found guilty of fraud in December 2024.
Key Affiliations
Controversies & Concerns
Celsius Network collapsed owing $4.7 billion to 1.7 million depositors who lost their life savings
Promoted Celsius as safer than traditional banks while using customer deposits for risky speculative trading
Personally withdrew $44 million in crypto assets weeks before halting customer withdrawals
Manipulated price of Celsius CEL token through wash trading and market manipulation
Made hundreds of public statements about platform safety that SEC alleges were materially false
Operated Celsius as an unregistered securities offering bilking retail investors
Found guilty of fraud charges in December 2024 after federal trial
Related Investigations (1)
Criminal Charges & Violations
4 documented violations
18 U.S.C. § 1343 - Wire FraudDefrauded Celsius customers by making false statements about platform safety while secretly misusing their funds for risky trades(financial)
15 U.S.C. § 77q - Securities FraudOperated unregistered securities offering through Celsius Earn program; made materially false statements to investors(financial)
7 U.S.C. § 9 - Commodities FraudManipulated price of CEL token through fraudulent and manipulative trading practices(financial)
18 U.S.C. § 1348 - Securities and Commodities Fraud ConspiracyConspired with others to defraud Celsius investors through coordinated scheme involving false statements and market manipulation(financial)
Known Associates & Connections
Sam Bankman-Fried
Fellow crypto CEO whose FTX collapse happened months after Celsius; both charged with fraud
Do Kwon
Terra/Luna founder whose collapse triggered crisis that exposed Celsius insolvency
Sources & Documentation
3 documented sources from official records, investigations, and reports
Personal Information
- Born
- 1965-01-01
- Birthplace
- Ukraine (then Soviet Union)
Education
- •Engineering Studies, Tel Aviv University (1990)
Key Timeline
2017
Founds Celsius Network, promising bank-beating yields on crypto deposits
2018-2021
Celsius grows to manage $25 billion in assets from 1.7 million depositors
2021
Celsius peaks at $25 billion AUM; Mashinsky becomes crypto celebrity promoting platform safety
2022-05
Terra/Luna collapse triggers crypto market crash; Celsius faces liquidity crisis
2022-06-12
Celsius halts all customer withdrawals trapping $4.7 billion in customer funds
2022-06
Mashinsky personally withdraws $44 million in crypto in weeks before customer freeze
2022-07-13
Celsius files for Chapter 11 bankruptcy
2023-07-13
Arrested and charged by DOJ with securities fraud, wire fraud, and commodities fraud
2023-07
SEC files civil complaint alleging Mashinsky raised billions through fraud
2024-12
Found guilty of fraud charges at federal trial