US court to announce sentence for founder of collapsed lending platform Celsius on May 8
Alex Mashinsky previously partially pleaded guilty to fraud and market manipulation
24.04.2025 - 12:05
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What’s new? A New York court will announce the sentencing of former Celsius crypto platform lending platform CEO Alex Mashinsky on May 8. He was indicted in July 2023 on multiple counts related to fraud and market manipulation, with a maximum penalty of a combined 20 years in prison. Mashinsky pleaded guilty to one episode of fraud, as well as manipulating the native token’s rate of the CEL platform.
What else is known? The sentencing was originally scheduled for April 8. However, Mashinsky’s attorneys requested a one-month delay to present additional evidence for his defense.
Celsius was one of the major crypto platforms to go bankrupt amid the crypto winter of 2022 when markets collapsed following the multi-billion dollar crash of Do Kwon’s Terra blockchain.
US Department of Justice will revise the process for assessing compensation for victims of crypto fraud
The agency is interested in the cases of FTX, Voyager, Celsius, BlockFi, and Genesis
The DOJ, Securities and Exchange Commission (SEC), and Federal Trade Commission (FTC) alleged that Mashinsky misled investors about the platform’s returns and defrauded them of billions of dollars. At its peak, Celsius held $13 billion in customer deposits.
During the trial, Mashinsky’s attorneys argued that he relied on information provided by the company’s experts and did not mean to harm clients.
Bankrupt platform Celsius will return another $127 million in bitcoin and cash to customers
The platform began the bankruptcy process in July 2022
Earlier, FTX founder Sam Bankman-Fried was sentenced to 25 years in prison for multibillion-dollar fraud with client funds, he denies guilt and seeks to appeal the verdict. Terra creator Do Kwon also denied the charges after being extradited to the US and beginning his trial, with a trial scheduled for January 2026.
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