Celsius' Alex Mashinsky: Fraud sentencing date set for May 8
- Alex Mashinsky will be sentenced on May 8, 2025;
- Celsius Network left $4,7 billion in debt with customers;
- More than 200 victims reported damage caused by Mashinsky;
Alex Mashinsky, founder and former CEO of Celsius Network, will face He was sentenced on May 8, 2025, after pleading guilty to two counts of commodity fraud and price manipulation. The executive confessed to misleading investors about the company's financial health and manipulating the price of the native CEL token for his own benefit, resulting in illicit gains of approximately $48 million.
Celsius, which offered attractive yields on cryptocurrency deposits, filed for bankruptcy in July 2022, leaving a $1,2 billion deficit and about $4,7 billion in customer debt. At its peak, the platform managed more than $25 billion in assets.
In a sentencing memorandum filed on April 17, Mashinsky’s defense requested a maximum sentence of one year and one day in prison, arguing that he acted with “genuine good intentions” and had a spotless professional record. However, federal prosecutors presented more than 200 statements from victims highlighting the devastating impacts of Mashinsky’s actions on the lives of ordinary investors.
This case joins other scandals in the cryptocurrency sector, such as that of Sam Bankman-Fried, former CEO of FTX, sentenced to 25 years in prison for similar crimes, and Do Kwon, co-founder of Terraform Labs, who will face trial in January 2026.
Mashinsky’s sentencing is eagerly awaited as it could set important precedents for holding executives accountable in the cryptocurrency market.
