As the sentencing date for Alex Mashinsky approaches, U.S. federal prosecutors have submitted a trove of emotional victim testimonies that lay bare the human toll of the Celsius Network collapse — potentially influencing the court’s final decision.
In a letter dated April 23, interim U.S. Attorney for the Southern District of New York, Jay Clayton, informed a Manhattan federal court that his office had compiled and submitted over 200 victim impact statements. The documents — totalling 418 pages — reflect the deep financial and emotional scars left on investors who trusted the Celsius platform and its former CEO.
Some individuals who shared their experiences disclosed that they had invested their life savings in Celsius, reassured by Mashinsky’s public claims that the platform was safe and secure. Others expressed frustration and disappointment over the amount they recovered through bankruptcy proceedings, which often fell short of their initial deposits.
Once a prominent player in the crypto lending space, Celsius promised users attractive yields on their crypto holdings and offered loans against crypto collateral. However, the firm froze withdrawals during the crypto market meltdown mid-2022 and declared bankruptcy in July of that year.
A year later, in July 2023, Mashinsky was released on a $40 million personal recognizance bond after being indicted on seven federal charges. He entered a plea deal in December, admitting guilt to one count each of securities fraud and commodities fraud — charges carrying a potential 30-year sentence if served consecutively.
Mashinsky is scheduled to be sentenced on May 8. In an April 17 court filing, his legal team urged the judge to impose a sentence of no more than one year and one day, citing his “good intentions” and an otherwise clean record.
The U.S. government’s sentencing recommendation is expected to be filed on April 24.
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