The US Department of Justice (DOJ) is seeking a 20-year prison sentence for Alex Mashinsky, the founder and former CEO of the cryptocurrency lending platform Celsius, due to his involvement in fraudulent activities. The DOJ filed a sentencing memorandum on April 28, 2025, highlighting the significant losses experienced by Celsius customers, totaling approximately $4.7 billion in crypto assets that were inaccessible after the company's collapse in June 2022. The DOJ emphasized that Mashinsky's actions were not due to negligence but were the result of calculated decisions to lie and deceive. It noted that Mashinsky personally profited over $48 million from these fraudulent activities and acknowledged his leadership role in the scheme that inflicted losses exceeding $550 million. The court is urged to impose a sentence that reflects the severity of his actions and the widespread harm caused to thousands of victims. This evolving story will continue to receive updates as new information arises.

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