Prosecutors Seek 20-Year Sentence for Celsius Ex-CEO Mashinsky in $550M Fraud Case

Prosecutors have requested a 20-year prison sentence for Alex Mashinsky, the former CEO of Celsius, in connection with a multi-million-dollar fraud case. The Department of Justice (DOJ) filed a 97-page document on April 28, detailing Mashinsky's alleged "years-long campaign of lies and self-dealing" that resulted in significant financial losses for thousands of customers. The fraudulent activities led to around $4.7 billion in customer funds being frozen when Celsius halted withdrawals in June 2022.

Prosecutors argue that Mashinsky's actions were deliberate and calculated, aimed at deceiving customers and enriching himself. They contend that his behavior has severely damaged trust in the cryptocurrency industry, and a harsh sentence is necessary to restore confidence and deter similar misconduct in the future. The court is set to sentence Mashinsky on May 8, with Judge John Koeltl from the Southern District of New York presiding over the hearing. The court may also decide on financial penalties to help recover some of the funds lost due to Mashinsky's actions.

Mashinsky's legal troubles escalated after he pleaded guilty in December 2024, admitting to his role in the fraudulent activities at Celsius. The DOJ estimates that the total losses from his crimes exceed $550 million, with Mashinsky personally gaining over $48 million during the scheme. On April 23, Jay Clayton, the newly appointed acting US Attorney for Manhattan, submitted over 200 written statements to the court regarding Mashinsky’s case, further highlighting the severity of his actions and the need for a stringent sentence.