Prosecutors ask for 20 years in prison for Alex Mashinsky, former CEO of Celsius

Prosecutors consider that a 20 -year penalty is appropriate, especially taking into account the multimillion -dollar losses that derived fraud practices for the millions of users to which it offered services Celsius.

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• The former CEO of Celsius, Alex Mashinsky, declared himself guilty of raw material fraud and price manipulation.
• The Prosecutor’s Office argues that his lack of remorse aggravates the severity of his crimes.
• The sentence is scheduled for May 8 and could reach 20 years in prison.

The former CEO of Celsius, Alex Mashinsky, faces a possible sentence of up to 20 years in prison after being found guilty of multiple financial crimes related to the collapse of his company. The Prosecutor of the Southern District of New Yorknow led by Jay Clayton, he filed a memorandum requesting a hard conviction.

Mashinsky declared guilty in December 2024 of raw material fraud and carrying out a scheme to manipulate the price of the native token of Celsius, known as Cel He was arrested in 2023, accused of deceiving his clients regarding the profitability of the platform.

The collapse of Celsius and its impact

Founded as a crypto loan platform, Celsius He promised to use attractive returns and access to loans supported by digital assets. However, in 2022 the company declared bankruptcy, leading to the loss of savings of numerous small investors.

During the liquidation process in 2024, some assets of Celsius They were used to create a new mining company Bitcoin call Digital Ion. Despite these initiatives, losses for investors were catastrophic.

According to prosecutors, Mashinsky personally enriched himself at the expense of those who trusted the company, exacerbating the magnitude of financial damage when Celsius collapsed.

A pattern of deception and lack of remorse

The Prosecutor’s Office stressed that Mashinsky has not shown genuine repentance. In his statement, they pointed out that “He has abandoned any claim to recognize his sustained misconduct” and that, instead of admitting, he presents himself as a misunderstood leader whose only fault was his “Excessive enthusiasm”, According to review The Block.

Prosecutors compared their case with other great financial fraud in the United States, citing the 150-year sentence imposed on Bernie Madoff and the 25-year-old received by Sam Bankman-Fried, former CEO of FTX. Unlike the latter, who was young and inexperienced, Mashinsky, in his 60 years, had the maturity and experience to fully understand their actions, prosecutors said.

This background serves as an important reference point for the Court when considering the sentence, also taking into account that Mashinsky accepted the charges against him.

A new leadership in the Prosecutor’s Office

Jay Clayton, who assumed as an interim prosecutor in April 2025, has had an outstanding trajectory. He was previously president of the United States Stock Exchange and Securities Commission (SEC) and has also held advice positions in companies linked to the crypto sector.

His approach in high profile cases, such as Mashinsky’s, reflects a hard line against financial crimes committed in the field of cryptocurrencies.

Mashinsky will meet his final sentence on May 8. If the prosecution’s application is confirmed, he would face two decades after bars, marking another chapter in the series of legal consequences for prominent figures of the crypto industry.

Written article with the help of an AI content editor, edited by Angel Di Matteo / Diariobitcoin

Original image of Diariobitcoin, Created with artificial intelligence, for free use, licensed under public domain.

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