Former Celsius Network CEO Alex Mashinsky is set to be punished On May 8, 2025, following his offense on two federal criminal charges related to fraud and market manipulation.
The judgment was held in a federal Manhattan court, in which United States prosecutors have outlined a case against Mashinsky covering years of alleged misconduct involving Celsius' operations and the firm's native token.
Way -The victim's statements submitted in advance of the subjugation
Mashinsky entered a guilty request in December 2024 with a number of commodity fraud and a number of price manipulation. Initially, faced with many charges, including wire security and fraud, his resignation has been delayed from April 8 after a request from his legal team to submit further evidence for consideration.
He can deal with a prison term for up to 20 years, even if punished by all charges, the penalty can be up to 30 years. The case is one of the most high profile examples of legal action following the 2022 collapse of many crypto lending platforms.
In the lead-up to the suspension, US prosecutors submitted more than 200 statements of the victim's impact from Celsius users detailing the financial and emotional impact of the platform collapse.
These documents were shared by US interim attorney Jay Clayton on April 23, 2025, and offered insights on the size of the damage that retail investors experienced. The statements were eventually made publicly available by crypto transparency advocates Molly White through courtlistener.
The prosecutors just submitted more than 200 statements of the victim's impact in advance of Alex Mashinsky's judgment in case of Celsius fraud. I bought them at Pacer to freely use it in courtlistener: pic.twitter.com/jchonwpva6
– Molly White (@molly0xfff) April 23, 2025
The victim's statements, covering more than 400 pages, include testimony from individuals who say they have lost their retirement, emergency funding, and family investment. Many accounts describe how users are encouraged to stake crypto assets with Celsius based on high return and security promises.
In one case, a former teacher reported that lost more than 70% of the living savings, while others mentioned depression, financial immorality, and difficulty recovering from losses. Some investors said they were left with debt or financial obligations that they did not find following Celsius' losses.
Mashinsky's role and greater legal implications
The Celsius network filed for losses in July 2022 following a broader collapse of the crypto market, following Terra's ecosystem. The company once estimated to hold more than $ 13 billion in customer assets.
During the legal proceedings, government agencies including the Department of Justice, Securities and Exchange Commission (SEC), and the Federal Trade Commission (FTC) accused Mashinsky of misleading investors and incorrect expression of profitability and financial health.
The FTC lived with Celsius in mid-2023, which permanently hindered the firm from managing consumer property and imposing charges on former executives. In defense of Mashinsky, his legal team argued that he relied on the internal guide to the expert and did not intend to deceive customers. However, prosecutors maintain that his actions have led to billions of losses to investors.
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