Celsius Ex-CEO Mashinsky Faces 20-Year Sentence Request, Approved Travel for Daughter's Wedding

Alex Mashinsky, the former CEO of Celsius Network, is set to face sentencing on May 8 for his involvement in a crypto fraud scheme. The sentencing hearing will determine whether Mashinsky will serve prison time following a plea deal with prosecutors. Mashinsky pleaded guilty to commodities fraud and a fraudulent scheme to manipulate the price of the platform’s native token, CEL.

In a surprising turn of events, Mashinsky has requested permission to travel from New York to Memphis, Tennessee, between May 26 and May 29 for his daughter’s wedding. Judge John Koeltl of the US District Court for the Southern District of New York approved this application, which was available on the public docket on May 8 but later appeared to have been removed.

Mashinsky has been free on a $40-million bond since July 2023, with travel outside certain areas requiring court approval. The approval for his travel to Memphis highlights the personal circumstances that Mashinsky is navigating alongside his legal troubles.

Prosecutors have asked the judge to impose a 20-year sentence on the former Celsius CEO, while Mashinsky’s lawyers requested that he serve one year and one day in prison. The sentencing hearing could set a precedent for how criminal cases involving cryptocurrency are handled under the current administration.

Mashinsky's request to travel for a wedding comes as a surprise, given the severity of the charges against him. The fraud scheme netted him $48 million while Celsius customers suffered billions in losses when the platform collapsed in 2022. The outcome of this request and the subsequent sentencing will be closely watched by those involved in the case and the broader crypto community.