Bombshell: U.S. Prosecutors Demand 20 Years Behind Bars for Celsius Founder Alex Mashinsky

A Calculated Fraud That Shattered Lives

U.S. prosecutors are gunning for a 20-year prison sentence for Celsius founder Alex Mashinsky, branding his actions as a cold, calculated fraud that left thousands of customers reeling from billions in losses.

Justice Department's Harsh Words

The U.S. Department of Justice isn't pulling any punches, urging a federal judge to lock up Celsius Network founder Alex Mashinsky for two decades for what they call a "deliberate" scam that wiped out billions in customer funds.

Prosecutors Slam Mashinsky's Denial

In a fiery memo filed on Monday, prosecutors blasted Mashinsky for refusing to own up to his crimes, despite being buried under "overwhelming evidence of guilt" and having already pleaded guilty to the charges he'll be sentenced for.

"He's dropped all pretense of admitting his relentless wrongdoing, and he doesn't even pretend to be sorry. Instead, he claims he was driven by a selfless desire to serve, his only missteps being too much enthusiasm for Celsius and trusting the wrong executives."

The U.S. Department of Justice

Mashinsky's Guilty Plea and Celsius's Collapse

Mashinsky copped to the charges in December, admitting he misled customers about the safety of their deposits and secretly manipulated Celsius's CEL token.

Celsius pulled the plug on client withdrawals in June 2022, and a month later, the company went belly-up. The crypto lender was left with a measly $167 million in its accounts to pay back its clients, forcing them to freeze all customer withdrawals to buy time to scrounge up more cash.

Mashinsky's Pre-Bankruptcy Cash Grab

Reports claim Mashinsky and his wife yanked an estimated $12 million in crypto from the Celsius Network before the bankruptcy proceedings kicked off. Celsius, which launched in 2018, ballooned to 200 employees and juggled around $10 billion in crypto assets by 2021.

Victims' Heart-Wrenching Pleas

More than 200 victim statements poured in before sentencing, with many demanding a life sentence for Alex Mashinsky. Celsius investor Brandon Lawrence said the very essence of cryptocurrency, along with his ambitions and dreams, had been shattered.

Retired teacher Stephen Levenberg said he'd settle for a three-year sentence for Mashinsky if the stolen funds were returned. Alex Mashinsky's sentencing is set for May 8, with Judge John G. Koeltl presiding over the case.