According to Cointelegraph, Alex Mashinsky, the founder and former CEO of the now-defunct cryptocurrency lending platform Celsius, is facing a potential 20-year prison sentence. The U.S. Department of Justice (DOJ) has recommended this severe penalty due to Mashinsky's involvement in fraudulent activities that resulted in multibillion-dollar losses for Celsius customers. On April 28, the DOJ filed a sentencing memorandum against Mashinsky, highlighting the significant financial impact of his actions. The document revealed that Celsius users were unable to access approximately $4.7 billion in crypto assets after the platform halted withdrawals on June 12, 2022. The DOJ argued that Mashinsky's actions constituted a "years-long campaign of lies and self-dealing," which left behind billions in losses and thousands of victimized customers.
The DOJ's memorandum also detailed Mashinsky's personal gains from the fraudulent schemes, noting that he benefited by $48 million. In December 2024, Mashinsky admitted to leading the criminal activities at Celsius, acknowledging that his crimes resulted in losses exceeding $550 million. The DOJ emphasized that Mashinsky's guilty plea demonstrated that his actions were not due to negligence or bad luck but were deliberate and calculated decisions aimed at personal enrichment. This case is ongoing, and further updates will be provided as more information becomes available.
