The former Celsius CEO, Alex Mashinsky, has been sentenced to 12 years in prison for fraud by the US federal court for the Southern District of New York. Mashinsky’s legal team sought a lighter sentence, emphasizing his clean record, military service, and guilty plea. However, US prosecutors recommended a 20-year sentence for his actions. Despite betting markets predicting a lenient sentence, Polymarket showed only an 11% chance of a 20-year term or higher. This sentencing comes in contrast to President Donald Trump’s past pardons of crypto executives at the start of his term, signaling a shift in enforcement. The Department of Justice under Trump aims for Mashinsky’s sentence to serve as a warning to others in the industry, emphasizing severe punishment for fraud regardless of the sector. The defense highlighted Mashinsky’s character and career but faced arguments that he targeted unsophisticated retail investors. Mashinsky’s legal team sought a shorter sentence, while the prosecution pushed for the 20-year term. Trump’s actions with high-profile pardons have influenced other crypto defendants like Roger Ver and Sam Bankman-Fried, who are seeking clemency. The evolving regulatory landscape and Trump’s own crypto projects have raised concerns over corruption and conflicts of interest. Mashinsky’s 12-year sentence sets a precedent that certain financial crimes will not go unpunished in the current environment.