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US DOJ Seeks 20-Year Sentence for Celsius Founder Alex Mashinsky Over $4.7B Fraud, $48M Profit; Sentencing Hearing May 8

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Updated Apr 30, 2025, 09:05 AM

The U.S. Department of Justice is seeking a 20-year prison sentence for Alex Mashinsky, founder and former CEO of the defunct cryptocurrency platform Celsius Network. Mashinsky pled guilty to two counts related to a fraud scheme that caused approximately $4.7 billion in losses to users. Prosecutors argue that Mashinsky engaged in a sustained and calculated campaign of deceit over several years, targeting ordinary investors.

They also contend that he personally profited by more than $48 million as Celsius collapsed. The sentencing hearing is scheduled for May 8, 2025. The 20-year sentence sought by the DOJ is slightly less than the sentence given to Sam Bankman-Fried, another high-profile crypto figure. Prosecutors emphasize the continuing danger Mashinsky poses due to his actions during the operation of Celsius.

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Sources

decrypt.co(3)theblock.co(2)wjtv.com law360.com

Gabor Gurbacs

@gaborgurbacs

Celsius Fraudster Alex Maschinsky is looking at 20 years of prison, per US Attorney Jay Clayton recommendation. https://t.co/0ZZiykWbo2

WHLT 22 Hattiesburg

@WHLT22

Prosecutors seek 20-year prison term for founder of failed crypto platform Celsius Network https://t.co/PZtioWTJzk

Law360

@Law360

Prosecutors have urged a federal judge in Manhattan to sentence the founder of defunct cryptocurrency platform Celsius to 20 years in prison. https://t.co/hxi5wo6wzn https://t.co/ExFktRgFEl