Former Celsius CEO Alex Mashinsky is pushing back hard against the U.S. Department of Justice’s request for a 20-year prison sentence, accusing prosecutors of painting him as a “venom-laced” villain and ignoring his clean business record.
In a memorandum, Mashinsky’s legal team argued that the proposed sentence is extreme for a nonviolent, first-time offender who has already accepted responsibility by pleading guilty. They urged the court to consider a lighter sentence of just over a year—366 days—claiming the government’s portrayal is an overreach designed to make him a scapegoat.
“It concludes by recommending that a first time, nonviolent offender who pled guilty and accepts responsibility receive a death-in-prison sentence.”
the defence wrote.
In a separate filing on April 28, the DOJ said Mashinsky’s actions were calculated and deceitful, accusing him of deliberately misleading Celsius users and manipulating the price of the CEL token for personal gain. He reportedly earned $48 million by offloading CEL holdings before the platform’s collapse.
Mashinsky, now 59, pleaded guilty in December 2024 to charges of commodities fraud and market manipulation. His sentencing is set for May 8, and if the DOJ’s request is granted, he will remain behind bars until the age of 79.
The case has drawn emotional responses from hundreds of victims who lost their savings when Celsius halted withdrawals in June 2022, just weeks before filing for Chapter 11 bankruptcy. Court records indicate the firm owed creditors $4.7 billion at the time.
Despite a restructuring plan approved in late 2023 and partial repayments made to over 250,000 creditors in August 2024, many continue to hold Mashinsky responsible for the fallout. His defence maintains he is being unfairly blamed for collective corporate decisions and market forces beyond his control.
Mashinsky’s legal team argues that the harsh sentence is a punishment for refusing to “capitulate to the government’s exaggerated narrative” rather than a fair reflection of his actions.
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