Celsius Network founder Alex Mashinsky faces life imprisonment demands from over 200 investors ahead of his sentencing on May 8. Victims claim he caused significant harm, including emotional distress and financial losses. Mashinsky had previously pleaded guilty to felony charges involving misleading customers and manipulating cryptocurrency prices, and his downfall is part of a broader collapse in the crypto sector.
Customers of Celsius Network are adamantly demanding a life sentence for Alex Mashinsky, the founder whose actions they say led to severe emotional and financial turmoil. Over 200 victim impact statements, many of which have been reviewed by Decrypt, were submitted to U.S. District Judge John G. Koeltl ahead of Mashinsky’s sentencing scheduled for May 8. Most of these statements plead for the harshest penalty possible against Mashinsky, who they blame for deeply affecting many lives.
Brandon Lawrence, an investor who claims he lost about $141,000 in Bitcoin, articulated the anguish felt by many. He stated, “He devastated numerous lives, and there are those who have taken their own lives because of him.” Echoing a similar sentiment, Lawrence called for Mashinsky to face consequences like those of notorious fraudster Bernie Madoff, deserving of life behind bars.
This public outcry follows Mashinsky’s guilty plea to two felony charges last December, where he admitted to misleading investors regarding Celsius’s financial status and using client funds to manipulate the value of CEL, the company’s token. Bryan Barrett, another investor, described the aftermath of Mashinsky’s actions. He stated that the case is critical for reinstating public trust in the legal system, saying violations must be met with appropriate punishment.
Mashinsky’s downfall has been marked by the larger context of a bear market that saw many crypto firms struggle. Celsius froze withdrawals in June 2022, locking up about $4.7 billion in customer funds, and subsequently, the firm filed for bankruptcy weeks later. Initially, Mashinsky faced seven criminal charges in July 2023, which included serious accusations like wire fraud and market manipulation.
Evidence presented by prosecutors revealed that Celsius had misused customer deposits to artificially boost the price of CEL, while Mashinsky sold off his shareholdings. One internal message indicated a conscious awareness among executives, as former Chief Revenue Officer Roni Cohen-Pavon stated, “The value was fake. No one is buying except for us.” Despite the charges carrying a potential 30-year sentence, Mashinsky’s defence is requesting leniency.
In a recent court decision, the sentencing date was postponed from April 8 to May 8 at the request of Mashinsky’s attorneys. They indicated more time was needed to accurately present Mashinsky’s perspective on the case. Meanwhile, Mashinsky has quietly sought to enlist the help of noted defence lawyers known for high-profile cases, including those from the Trump Organisation and Sam Bankman-Fried’s trial.
