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Celsius CEO Alex Mashinsky Faces Prison As US DOJ Seeks 20-Year Sentence

US DOJ seeks 20-year prison for former Celsius CEO Alex Mashinsky for inflicting "catastrophic financial and emotional harm" on thousands of victims through crypto fraud.
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Celsius CEO Alex Mashinsky Faces Prison As US DOJ Seeks 20-Year Sentence

Highlights

  • Former Celsius CEO Alex Mashinsky faces 20-year prison sentence for cryptocurrency fraud charges.
  • Mashinsky pleaded guilty to misleading customers and manipulating Celsius's native token, CEL.
  • US DOJ seeks harsh sentence to reflect seriousness of offense and promote respect for law.

Alexander or Alex Mashinsky, the former CEO of the crypto lender Celsius Network, is all set to face substantial prison time for his white-collar crimes. On Monday, the U.S. Department of Justice (DOJ) sought a 20-year sentence for Mashinsky, who was once considered a rockstar for the crypto community.

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Celsius CEO Alex Mashinsky’s Legal Troubles

In a sentencing memorandum filed on April 28, 2025, federal prosecutors recommended this substantial imprisonment term for Mashinsky for inflicting “catastrophic financial and emotional harm on thousands of victims”. The fraud that brought a financial tragedy to thousands of his trusted customers had come to light in 2022.

Alex Mashinsky pleaded guilty in December 2024 to two counts of fraud charges. He admitted to misleading customers and manipulating the price of Celsius’s native token, CEL, for personal gain. The now-bankrupt company’s downfall was accelerated by risky investment strategies, a lack of transparency, and Mashinsky’s questionable governance practices.

Crime Does Pay: DOJ

At its peak, Celsius was a popular crypto platform managing over $20 billion in crypto assets in 2021. As the cofounder, Mashinsky is said to have sold over $48 million worth of CEL tokens at inflated prices before the company filed for bankruptcy in July 2022.

“Even with the financial consequences of his guilty plea, Mashinsky will continue to be a very wealthy man, and could easily conclude that crime does pay, after all,” reads the Government’s sentencing memorandum.

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Celsius CEO Sentencing on May 8

The sentencing is scheduled for May 8, 2025, in the U.S. District Court for the Southern District of New York.

The prosecutors noted that “having pled guilty to the offenses for which he will be sentenced, Mashinsky refuses to accept responsibility.” They concluded that, “he enriched himself while destroying lives, and even today refuses to acknowledge what he did.”

US DOJ Urges ‘Decades’ In Prison

DOJ described him as the architect of a “massive fraud” who “deserves decades, not years, in prison”. They argue that a 20-year sentence is necessary to reflect the seriousness of the offense, promote respect for the law, and provide just punishment.

The case marks a watershed moment in crypto regulation as Alex Mashinsky’s fraud had led to thousands of customers reportedly losing their life savings. Over 200 victims submitted impact statements to the court as the case highlighted the growing need for robust protection for investors.

Cryptocurrency executives have been increasingly under the scanner in recent years, and Alex Mashinsky’s sentencing could likely set a precedent for how similar cases are handled.

For context, a recent report showed that North Korean hackers are targeting developers with a new malware campaign. Federal prosecutors also emphasize the need for further oversight of the rapidly evolving cryptocurrency industry.

Notably, the crypto scams are also been increasing in recent times. This week, Monero’s price jumped after a $330 million suspicious Bitcoin transfer, which has caught the attention of the traders.

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Deekshith Pinto

Deekshith is a seasoned news editor with over a decade of experience in the news and media industry. He began his career as an engineer at Toyota but soon swapped tools for storytelling. After his master’s at Nalanda University, he joined Times Internet as a staff writer. Over the next few years, he served as the News Editor for Indian bureaus of multiple international platforms, mainly The Weather Channel and Business Insider. He scaled both these large platforms and mentored dynamic teams of young writers and content creators. His editorial instincts are driven by a passion for storytelling, a fascination with data, and just the right amount of chaos to keep things interesting.

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Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
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