Alex Mashinsky is a serial entrepreneur and former CEO of Celsius Network, a bankrupt crypto lending platform. Currently, Alex Mashinsky has an estimated net worth of $50 million and is facing a long prison sentence if found guilty.
Early Life
Mashinsky was born in Soviet Ukraine on October 5, 1965 and the family relocated to Israel. At a young age, he was tech savvy and enjoyed tapping into public phone lines.
To make extra money as a teenager, Mashinsky flipped impounded items at customs auctions at Ben Gurion Airport. Mashinsky studied electrical engineering at three different universities but didn’t graduate. After a stint in the Israel Defense Forces, Alex relocated to New York in the late 1980’s.
Early Career
In the US, he operated a company that traded chemical delivery contracts. The business had a setback in 1989, so Alex got a job at a software company called A+ Systems.
Alex Mashinsky created VoiceSmart, one of the first startups to provide computer-based Voice over Internet Protocol (VoIP) in the early 1990s. In 1996, he gained traction founding Arbinet, a VoIP marketplace.
In 2005, Mashinsky sold his equity in Arbinet and used some of the money to launch GroundLink, a business that allowed people to book a limousine and car service. Once Uber came along they took over the market.
The Celsius Network
Eventually Alex began investing in startups after two successful exits. He set up Governing Dynamics, an early-stage venture capital firm. In 2017, Alex Mashinsky ventured into crypto through co-founding Celsius Network with Daniel Leon.
The service allowed users to lend digital assets and earn a yield, in certain cases they were offering up 18.6% APY. Celsius was one of the leading platforms, competing against BlockFi and Coinbase.
At its peak, they had $17 billion under management and 130,000 BTC staked on the platform. Celsius filed for bankruptcy in July 2022 and Alex stepped down as CEO in September 2022. The company has agreed to pay a $4.7 billion settlement to the FTC.
Net Worth and Earnings
Alex has invested in over 60 businesses and reportedly raised over $1 billion in funding for his ventures. He was also a popular public speaker and spoke at over 250 events around the world.
The Celsius Network token, CEL, once had a billion dollar market cap but is now worthless. Before the collapse of Celsius, Alex reportedly withdrew $10 million from the platform. Based on data from Arkham Intelligence, Mashinsky sold $44 million worth of CEL tokens.
Personal Life
Mashinsky is married to Krissy Mashinsky, they met in 2005 but didn’t tie the knot until 2011. The couple is raising six children together, three boys and three girls. Alex and his family reside in a multi-million dollar penthouse on Manhattan’s Upper East.
Alex is facing seven criminal counts, including securities and wire fraud. The entrepreneur is facing up to 115 years in prison as reported by the Wall Street Journal. There’s no doubt, his wealth will take a hit if convicted.