Key Notes
- Former CEO of Celsius, Alex Mashinsky, is expected to be sentenced on May 8.
- The sentencing was delayed by one month following a request from the defense to present additional evidence.
- Mashinsky pleaded guilty to securities and commodities fraud related to Celsius’s token, CEL.
Alex Mashinsky, the former CEO of Celsius, is set to be sentenced by a US court on May 8, 2025, after pleading guilty to two criminal counts. Two years ago, he faced accusations of wire fraud, securities fraud, commodities fraud, and multiple counts of market manipulation.
A New York district court filing released on 23 April 2025 has set out the date of sentencing. Initially, the sentencing was meant to happen on April 8 2025, but Mashinsky’s lawyers asked for the delay to give them time to provide additional evidence that might aid his defence.
Based on the charges, Mashinsky could face up to 20 years in prison. This follows his admission to one count of securities fraud and one count of commodities fraud related to Celsius’s native token, CEL.
Mashinsky’s Woes
Federal investigators found that Mashinsky deceived users through two major schemes. The first scheme involved misrepresenting the types of investments Celsius made, as well as its profit and success levels.
In the second scheme, Mashinsky manipulated the value of Celsius’s token, CEL, while secretly selling his own supply of tokens.
The court filing revealed that Mashinsky falsified the safety and sustainability of Celsius’s activities and rewards. As a result of misrepresenting Celsius as a secure platform, the company saw a significant increase in clients and fund inflow.
In 2021, Celsius held $25 billion in assets, a stark contrast to the $48 million Mashinsky has agreed to repay as part of his plea deal.
Mashinsky is not the only crypto CEO to have faced legal troubles. The former CEO of FTX, Sam Bankman-Fried was sentenced to 25 years in prison for fraud-related offences linked to stealing $8 billion from FTX customers.
These cases highlight the increasing scrutiny on cryptocurrency executives, with both investors and regulators demanding greater accountability in the sector. As the crypto industry continues to evolve, such legal battles may set important precedents for the future of digital assets and their regulation.
The outcome of Mashinsky’s sentencing could influence how other high-profile figures in the space approach their legal challenges moving forward.
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