Celsius Co-Founder Mashinsky's Lawyers Seek 1-Year Sentence, Oppose DOJ's Life Term

Attorneys for Alex Mashinsky, the former co-founder of the crypto lending platform Celsius, have vehemently opposed the Department of Justice's (DOJ) recommendation for a life sentence, instead advocating for a more lenient one-year prison term. In a recent court filing, Mashinsky’s legal team argued that the DOJ’s portrayal of their client as a malicious predator is unfair and misleading. They emphasized that Mashinsky is a first-time, non-violent offender who has pleaded guilty and accepted responsibility for his actions.

The lawyers contended that the DOJ’s submission is overly harsh and fails to acknowledge Mashinsky’s extensive background, which includes founding multiple successful businesses and serving in the Israeli army. They highlighted that Mashinsky’s past achievements and contributions to society should be considered in sentencing. The filing stated, “The Court should impose a sentence of no more than 366 days. The government’s venom-laced submission recasts this case as one involving a predator with an intent to ‘target’ victims, ‘harm’ them, and ‘steal’ their money. It concludes by recommending that a first-time, non-violent offender who pled guilty and accepts responsibility receive a death-in-prison sentence.”

Mashinsky was arrested in July 2023 following charges of violating securities law by the U.S. Securities and Exchange Commission (SEC). In December 2024, he pleaded guilty to orchestrating a multi-billion-dollar crypto fraud and other market manipulation schemes. The DOJ alleged that Mashinsky misrepresented Celsius as a secure and profitable platform, significantly inflating its user base and potential for profitability.

The legal team’s argument underscores the complexity of Mashinsky’s case, which involves both his past achievements and the severity of his alleged crimes. The DOJ’s recommendation for a life sentence reflects their view that Mashinsky’s actions were deliberate and not merely the result of negligence. However, Mashinsky’s lawyers maintain that his past contributions and the fact that he is a first-time offender should be taken into account, suggesting a more lenient sentence. The outcome of this legal battle will have significant implications for the sentencing of white-collar criminals in the crypto industry.