Celsius’ Mashinsky Seeks Leniency as DOJ Pushes for 20-Year Term

Lawyers for former Celsius CEO Alex Mashinsky are urging a U.S. judge to hand down a sentence of no more than 366 days, sharply opposing federal prosecutors’ push for a 20-year prison term tied to Mashinsky’s role in defrauding users of the now-bankrupt crypto lender. Mashinsky, 59, pleaded guilty in December to two criminal counts—commodities fraud and manipulation of the CEL token price—which earned him $48 million before Celsius collapsed in June 2022. Prosecutors initially charged him with seven counts, including wire fraud. In a May 5 court filing, Mashinsky’s legal team dismissed the DOJ’s sentencing memo as a “venom-laced submission” that unfairly portrays him as a predatory figure, ignoring that he is a nonviolent, first-time offender with a long track record in business. They argued that the government is “seeking a death-in-prison sentence” for someone who took responsibility through a guilty plea but refused to “capitulate” to the DOJ’s broader narrative. “The government’s narrative casts Alex as a villain from the outset,” the filing states. “He is being made a scapegoat for every action Celsius took, regardless of board approval or group decisions.” Federal prosecutors countered that Mashinsky’s crimes were deliberate and calculated, accusing him of systematically misleading Celsius customers while cashing out at their expense. In victim statements filed last month, hundreds of former Celsius users described the devastating personal losses they suffered after trusting Mashinsky’s public assurances. Celsius filed for bankruptcy in July 2022, listing $4.7 billion in liabilities. A U.S. bankruptcy court later approved a restructuring plan, and in August 2024, Celsius repaid more than $2.5 billion to over 250,000 creditors. Mashinsky is scheduled to be sentenced on Thursday, May 8 in New York. A 20-year sentence would see him released well into his late 70s. The case remains one of the most prominent criminal proceedings in the wake of the 2022 crypto lending crash, which also saw charges filed against former Celsius executive Roni Cohen-Pavon , whose sentencing was postponed pending the outcome of Mashinsky’s case.