Celsius founder Alex Mashinsky sentenced to 12 years for “unbank yourself” scam

As the case dragged on, Mashinsky and his family appeared unremorseful, victims said, even while facing threats of violence and significant public shaming. Some victims accused Mashinsky of lying to their faces and pushing them to continue depositing funds even when the end was near and he knew that the money would be lost.

In victim statements sent to US District Judge John Koeltl, customers accused Mashinsky of weaponizing his family-man brand to scam many naïve investors out of their life savings. Some suicides were reported, victims said, and elderly victims were among the most vulnerable, with many becoming homeless after retirement funds were drained. Among the victims was Rien Vanmarcke, who confessed to feeling haunted by guilt after convincing his aging mother to invest in Celsius and losing the majority of their savings.

And “Mashinsky’s cruelty didn’t end with the collapse,” Vanmarcke wrote. “His family mocked victims with ‘unbankrupt yourself’ merchandise funded by stolen savings, while flaunting luxury lifestyles online.”

Other victims also described feeling palpable shame, even if they felt their road to recovery wasn’t as bad as others. One victim, Daniel Frishberg, was still in high school when he lost 70 percent of his crypto to Mashinsky’s false promises.

“I am lucky that I am young and have plenty of time to make back the money I lost due to naively trusting Mr. Mashinsky—many are not as fortunate,” Frishberg wrote.