US DOJ Seeks 20-Year Sentence for Celsius Founder Mashinsky
Apr 29, 2025, 10:22 a.m.
13 sources
negative
The US Department of Justice (DOJ) has filed a 97-page sentencing memorandum recommending a 20-year prison term for Alex Mashinsky, the founder and former CEO of the defunct cryptocurrency lending platform Celsius. According to the memorandum, Mashinsky's calculated, fraudulent actions led to billions of dollars in losses for Celsius customers, with approximately $4.7 billion in crypto assets locked after the platform halted withdrawals in June 2022. His criminal activities resulted in over $550 million in investor losses, while he personally profited by $48 million. Mashinsky’s guilty plea in December 2024 confirmed his central role in leading the fraudulent schemes. This legal action underscores the government's determination to hold wrongdoers accountable in the crypto industry, and further updates are expected as the case develops.
The news is likely to negatively impact CEL's price due to heightened concerns over fraudulent practices associated with the Celsius platform. Investors may lose further confidence in the brand and its remaining assets, leading to a short-term price decline. Although improved regulatory clarity in the long-term could stabilize the token, the immediate market reaction is expected to be bearish as a result of Mashinsky's severe sentencing recommendation.
While Bitcoin is not directly involved in this legal case, market sentiment could be adversely affected by the broader implications of cracking down on fraud in the crypto industry. This may lead to short-term volatility in BTC as risk-off sentiment sets in among investors. However, Bitcoin's established market position and robust fundamentals suggest that any negative impact might be limited and temporary.
Sources
DOJ Seeks 20-Year Sentence for Celsius Founder Alex Mashinsky
CoinDesk
29.04.2025 07:43
US DOJ requests 20-year sentence for Celsius founder Alex Mashinsky
Cointelegraph
29.04.2025 08:50
DOJ Demands 20-Year Sentence for Celsius CEO Alex Mashinsky Over ‘Deliberate’ Fraud
cryptonews.com
29.04.2025 09:54
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