US DOJ Seeks 20-Year Sentence for Celsius Founder Mashinsky

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.