Former Celsius CEO Alex Mashinsky is not exactly taking the U.S. government’s request for a 20-year sentence lying down. The man behind the bankrupt crypto lending platform has labeled the U.S. Department of Justice's sentencing demand as a “venom-laced” attack, calling it a “death-in-prison sentence.” Ouch, that’s one way to put it.
The DOJ has recommended that Mashinsky serve at least 20 years in prison for misleading Celsius users and manipulating the price of its token, CEL. If he serves the full sentence, the 59-year-old Mashinsky would be 79 by the time he gets out. That’s a long stretch for a man who says he was just doing business. But the DOJ isn’t pulling any punches, arguing that his actions were calculated, deliberate, and fraudulent.
Mashinsky’s Legal Team Fires Back
In a May 5 memorandum, Mashinsky’s lawyers shot back, arguing that the government is completely overblowing the situation. They’re asking for no more than 366 days of prison time, emphasizing that Mashinsky is a first-time, nonviolent offender with a 30-year unblemished track record in business.
"The government's venom-laced submission recasts this case as one involving a predator," his team said, adding, “It concludes by recommending that a first-time, nonviolent offender... receive a death-in-prison sentence.”
They’re also pushing back against the idea that Mashinsky was a “fraud from the get-go,” accusing the DOJ of trying to make him the scapegoat for every bad decision, market fluctuation, and even office gossip within the company. In short, they’re saying he was just part of the mess, not the mastermind.
Mashinsky Pleads Guilty, But Still Fighting for a Lighter Sentence
Mashinsky pleaded guilty to two of seven charges in December 2024, admitting to commodities fraud and manipulating the price of CEL for personal gain. He had made $48 million from offloading his assets before the platform collapsed in June 2022. The DOJ, however, argues that his crimes were intentional and calculated.
Meanwhile, hundreds of victims of the Celsius collapse have filed statements, detailing how they lost their life savings after they trusted Mashinsky's assurances that their investments were safe. This is not just a corporate disaster—it is personal for many people.
The Celsius Debacle and Ongoing Legal Proceedings
Celsius had bankruptcy under Chapter 11 on July 13, 2022, with $4.7 billion due to creditors after it halted withdrawals. The company's restructuring plan, approved in November 2023, has already paid out $2.53 billion to 251,000 creditors, but many are yet to be paid.
Roni Cohen-Pavon, the former chief revenue officer of Celsius, also pleaded guilty to similar charges in September 2023. His sentencing has been delayed until after Mashinsky’s, so it looks like Mashinsky won’t be the only one facing the music soon. But for now, he’s fighting for a much lighter sentence—and calling a 20-year term a “death-in-prison” sentence might just be his most dramatic move yet.
HODL Team
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