Alex Mashinsky, the former CEO of collapsed crypto lender Celsius, will be sentenced on May 8, 2025, after pleading guilty to two criminal charges related to commodities fraud and price manipulation of the CEL token.
Mashinsky entered his plea in December 2024, admitting to one count of commodities fraud and one count of manipulating the price of Celsius’s native token. Each charge carries a maximum sentence of 20 years in prison.
The sentencing was originally scheduled for April 8 but was pushed back after Mashinsky’s legal team requested more time to submit additional evidence in his defense. They needed to prepare a “comprehensive sentencing submission” that accurately reflects his views on the charges, as well as other factors the court should consider when determining his sentence.
Mashinsky stepped down as Celsius CEO in September 2022. In July 2023, he was indicted on seven counts, including securities fraud, wire fraud, and conspiracy to commit fraud related to his activities at the platform.
Celsius collapsed and filed for bankruptcy in 2022. As part of its wind-down process, a portion of its remaining assets was used to launch a Bitcoin mining company, Ionic Digital.
Federal prosecutors opposed Mashinsky’s request for a one-month delay, calling it premature, but indicated they would be open to a one-week postponement.
As of now, Mashinsky remains free on $40-million bail until his trial. The former CEO allegedly earned $42 million in profits from the sale of CEL tokens.
Celsius, once a major player in the crypto lending sector, filed for bankruptcy in 2022 amid market turmoil following the collapse of Terra. At its peak, the platform reportedly held $13 billion in customer deposits.
Mashinsky is one of several high-profile crypto executives facing legal consequences from the last bull cycle. FTX founder Sam Bankman-Fried was sentenced to 25 years in prison in 2023, while Terraform Labs co-founder Do Kwon awaits trial in the U.S. following his extradition.
During his trial, Mashinsky’s attorneys argued he relied on internal financial experts and had no intent to mislead customers.
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