The US Department of Justice (DOJ) is seeking a 20-year prison sentence for Alex Mashinsky, the founder and former CEO of Celsius, a now-defunct cryptocurrency lending platform. The DOJ's sentencing memorandum, filed on April 28, cites Mashinsky's fraudulent actions that led to multibillion-dollar losses for Celsius customers. Customers were unable to access approximately $4.7 billion in crypto assets following Celsius's collapse in June 2022. The DOJ argued that Mashinsky's crimes were a result of deliberate and calculated actions to deceive, rather than negligence or luck. The memorandum claims that his fraudulent schemes caused over $550 million in losses while he personally profited by more than $48 million. Mashinsky has pleaded guilty, acknowledging his role as the leader of the criminal activity at Celsius. The DOJ emphasized the need for a substantial sentence to reflect the seriousness of his crimes and the significant impact on thousands of affected customers.

Source 🔗