Alex Mashinsky, the founder and former CEO of the collapsed cryptocurrency lending firm Celsius, has been sentenced to 12 years in prison for fraud that led to “billions in losses,” the Department of Justice announced on Thursday.

Celsius, which held $25 billion in assets at its peak, abruptly halted withdrawals and transfers during a broader crypto crash in 2022, locking up billions in customer funds. The firm filed for bankruptcy just weeks later.

The DOJ charged Mashinsky with securities fraud in 2023, accusing him of misrepresenting Celsius’s business and finances. It also claimed Mashinsky artificially inflated the price of the platform’s token, CEL, by “spending hundreds of millions purchasing it on the open market.” Mashinsky pleaded guilty to one count of securities fraud and one count of commodities fraud last December.

Mashinsky’s arrest comes as the Trump administration takes a softer stance on crypto regulation. Last month, a memo obtained by The Washington Post revealed the disbandment of a DOJ division dedicated to investigating crypto firms. The Securities and Exchange Commission has dropped several cases against companies in crypto, including Coinbase, Kraken, and Robinhood.

“Alexander Mashinsky targeted retail investors with promises that he would keep their ‘digital assets’ safer than a bank, when in fact he used those assets to place risky bets and to line his own pockets,” US Attorney Jay Clayton said in the press release. “In the end, Mashinsky made tens of millions of dollars while his customers lost billions.”