Celsius founder Alex Mashinsky sentenced to twelve years in prison

When the value of digital currencies fell sharply in spring 2022, Celsius ran into trouble. More and more customers withdrew their funds. In mid-June 2022, the platform stopped all withdrawals and filed for bankruptcy protection a month later.

At the time of the bankruptcy filing, the balance sheet deficit was $1.2 billion. Total customer deposits at the time amounted to $4.7 billion. According to a report from March of this year, 93 percent of the funds had been paid out to former customers.