Alex Mashinsky, founder and former CEO of Collapsed Crypto Lender Celsius Network, faced the prospect of spending the next two decades behind pillars if the US Department of Justice’s request for criminal justice note is given.
In the memo filed late Monday, DOJ called on the right to impose a 20-year-old prison sentence and called the crimes a “deliberate, calculated” fraud that caused almost $ 7 billion in customer loss and left thousands of financially destroyed.
Mashinsky, who in December pleaded guilty to incorrectly representing the security of customer deposits and manipulating Celsius’ Cel -Token, “refusing to assume responsibility” for his crimes and continues to change guilt to regulators, market conditions and even his victims, prosecutors said.
“Mashinsky’s crimes were not the product of negligence, naivety or unfinished,” they wrote. “They were the result of conscious, calculated decisions to lie, deceive and steal in the pursuit of personal wealth.”
At its highest in 2021, Celsius administered more than $ 20 billion in the customer’s cryptocry assets. Mashinsky marketed the aggressively platform as a safe alternative to banks that promised high yields and low risk.
Prosecutors said these promises were a cheat: Celsius took unknown loans, made risky trades and secretly used customer assets to manipulate the price of its Cel -Token – all while publicly assured the customers that their funds were safe.
Mashinsky personally sold over $ 48 million Cel at bloated prices, prosecutors said even when he told customers he “Hodling” with them. When Celsius collapsed in bankruptcy in July 2022, approx. 4.7 billion dollars in customer funds caught.
Post-Vankruptcy was left with customers with a deficit of over $ 1 billion. Adaptation to today’s crypto prize after 2024’s “Trump -Trade” -rally, prosecutors estimate the total loss is closer to $ 7 billion.
Prosecutors warned that something less than a significant prison sentence would not reflect the seriousness of Mashinsky’s behavior, undermine respect for the law and send the wrong message to other crypto leaders who are tempted to chase personal enrichment at the expense of their customers.
Judge John G. Koeltl will judge Mashinsky on May 8th.
