Former Celsius CEO Alex Mashinsky Requests One-Year Sentence, Challenges DOJ’s 20-Year Bid

Alex Mashinsky, the former CEO of failed cryptocurrency lender Celsius Network, is seeking a significantly reduced prison sentence of one year. The request starkly contrasts with the U.S. Department of Justice’s (DOJ) recommendation of a 20-year sentence.

Mashinsky pleaded guilty in December 2024 to federal fraud charges, admitting to misleading customers and manipulating prices. He also agreed to forfeit the $48 million he reaped in profits from his sales of the company’s native token, CEL.

Mashinsky Criticizes DOJ’s Request

The legal representatives of Mashinsky criticized the DOJ’s request for a 20-year sentence. They labelled it a “death-in-prison sentence” for a non-violent, first-time offender. They argued that the federal prosecutors have attempted to scapegoat the former Celsius executive and demonize his character.

“His voluntary plea of guilty and willingness to expose himself to thirty years in prison do not also require him to wholesale surrender to every unfounded accusation the government makes about his character, his motivations, his intent, or his family. Nor is his guilty plea an admission to the elements of the remaining open counts; Alex did not plead guilty to wire fraud, which “contemplate[s] harm to the victim,” the lawyers said.

The representative argued that their client deserves leniency due to his cooperation with investigators and lack of prior criminal history. They also cited what they described as genuine remorse. Furthermore, they asserted that Celsius Network’s collapse was due to broader market downturns rather than intentional misconduct.

The legal representative highlighted that Mashinsky is 59 years old. They noted he would be over 79 if he served the full prison term. Therefore, the defence emphasizes that a shorter sentence of a year would be sufficient to reflect the seriousness of the offence. They argue that it would also acknowledge the mitigating factors. Meanwhile, Mashinsky’s sentencing is scheduled for Thursday, May 8.

Celsius Saga

Celsius was known for offering interest on crypto deposits, attracting many users looking to grow their digital assets. But in June 2022, the company shocked its customers by halting withdrawals, preventing them from accessing around $7 billion in crypto assets.

The firm later filed for bankruptcy, leaving customers frustrated and angry. After exiting Chapter 11 bankruptcy in January 2024, Celsius began distributing over $2.5 billion to its creditors.