Celsius founder and former CEO, Alex Mashinsky, has criticized the government’s call for a 20-year prison sentence. He calls it “venom-laced” and describes it as a “death-in-prison sentence.”
The U.S. Department of Justice requested a minimum 20-year prison sentence for Mashinsky at his May. 8 hearing for misleading Celsius users and profiting from manipulating the platform’s token price. The 59-year-old would be 79 upon release if he serves the full term.
Lawyers representing Mashinsky argued in a May. 5 filing in a New York district court that he should receive no more than 366 days in prison. The attorneys said that the DOJ has overlooked his status as a nonviolent, first-time offender with a clean 30-year track record in business.
Celsius collapse: Mashinsky’s $48M scheme exposed
As part of a plea agreement, Mashinsky pled guilty in Dec. 2024 to charges of commodities fraud and manipulating the price of CEL. He made $48 million by selling off his holdings just before Celsius collapsed in June. 2022. Prosecutors had initially filed seven charges in July 2023.
Mashinsky’s lawyers claim that the DOJ’s request for a 20-year sentence is because their client’s refusal to “submit to the government’s exaggerated portrayals of his actions.” They specifically reject the accusation that he was a “fraud from the start.”
As part of its sentencing request on Apr. 28, the DOJ stated that Mashinsky’s guilty plea showed his crimes were deliberate and calculated. The crime involves lies, deception, and theft.
Celsius victims demand justice
Few days before, on Apr. 23, US federal prosecutors also submitted statements from hundreds of victims who lost money in the Celsius collapse. The victims described how some had entrusted their life savings to the platform. They trusted Mashinsky’s assurances that it was safe.
Celsius filed for Chapter 11 bankruptcy in July. 13, 2022, after stopping withdrawals in June due to volatile market conditions. The company owed $4.7 billion to its creditors at that time.
In Nov. 2023, a US bankruptcy court approved Celsius’ plan to restructure and repay its customers. $2.53 billion was paid to 251,000 creditors on Aug. 2024. Former Celsius chief revenue officer Roni Cohen-Pavon also pleaded guilty to similar charges in Sept. 2023. However, his Dec. 11 sentencing has been postponed until after Mashinsky’s.
