The US Department of Justice has prepared a memorandum requesting up to 20 years of imprisonment for the former CEO of the cryptocurrency platform Celsius, Alex Mashinsky. Experts claim he is guilty of massive fraud that resulted in nearly $7 billion in losses for clients.
This is reported by Finway
Charges and Consequences
In the document, prosecutors stated that Mashinsky was the “architect of a years-long campaign of lies and personal enrichment.” His actions were described as “deliberate and carefully planned.” It is known that he admitted to misleading clients about the safety of their deposits and manipulating the CEL token, selling them at inflated prices totaling over $48 million.
“These crimes are not the result of naivety or incompetence. They are the result of deliberate deception for personal gain.”
Company Status and Arrest
At its peak in 2021, Celsius managed assets exceeding $20 billion. Mashinsky presented the platform as a safe alternative to banks with high returns and low risk. However, at the same time, the company issued unsecured loans, engaged in risky operations, and secretly used client funds to manipulate the token’s price.
On the eve of the bankruptcy announcement in 2022, Mashinsky withdrew $10 million from the company. It later emerged that two other top executives also withdrew funds from accounts. Judge John J. Keltl will announce the verdict on May 8, 2025. The prosecution insists on a severe punishment that could deter other industry participants from similar crimes.
Mashinsky was arrested in July 2023, with bail set at $40 million. In September, his assets were to be frozen by court order. In total, he faced 115 years of imprisonment on all charges brought against him.