Former Celsius Network CEO Alex Mashinsky is scheduled to be sentenced on May 8, 2025, following his guilty plea to two federal criminal charges related to fraud and market manipulation.
The sentencing will be held in a Manhattan federal court, where US prosecutors have outlined a case against Mashinsky that spans years of alleged misconduct involving Celsius’s operations and the firm’s native token.
Hundreds of Victim Statements Submitted Ahead of Sentencing
Mashinsky entered a guilty plea in December 2024 to one count of commodities fraud and one count of price manipulation. Initially facing multiple charges, including securities fraud and wire fraud, his sentencing was delayed from April 8 after a request from his legal team to submit additional evidence for consideration.
He could face a prison term of up to 20 years, though if sentenced consecutively on all charges, the penalty could extend to 30 years. The case is one of the most high-profile examples of legal action following the 2022 collapse of several crypto lending platforms.
In the lead-up to sentencing, US prosecutors submitted more than 200 victim impact statements from Celsius users detailing the financial and emotional effects of the platform’s collapse.
These documents were shared by interim US Attorney Jay Clayton on April 23, 2025, and offer insights into the scale of harm experienced by retail investors. The statements were later made publicly available by crypto transparency advocate Molly White through CourtListener.
Prosecutors have just submitted over 200 victim impact statements in advance of Alex Mashinsky’s sentencing in the Celsius fraud case. I’ve purchased them on PACER to make them freely available on CourtListener: pic.twitter.com/JChonWPVA6
— Molly White (@molly0xFFF) April 23, 2025
The victim statements, spanning over 400 pages, include testimony from individuals who claim to have lost retirement savings, emergency funds, and family investments. Many of the accounts describe how users were encouraged to stake crypto assets with Celsius based on promises of high returns and security.
In one case, a former teacher reported losing over 70% of lifetime savings, while others cited depression, financial instability, and difficulty recovering from the losses. Some investors stated they were left with debt or financial obligations they were unable to meet following Celsius’s bankruptcy.
Mashinsky’s Role and Broader Legal Implications
Celsius Network filed for bankruptcy in July 2022 after the broader crypto market downturn, which followed the collapse of Terra’s ecosystem. The company was once estimated to hold over $13 billion in customer assets.
During the legal proceedings, government agencies including the Department of Justice, Securities and Exchange Commission (SEC), and Federal Trade Commission (FTC) accused Mashinsky of misleading investors and misrepresenting the firm’s profitability and financial health.
The FTC settled with Celsius in mid-2023, permanently barring the firm from managing consumer assets and imposing charges on former executives. In defense of Mashinsky, his legal team argued that he relied on internal expert guidance and did not intend to deceive customers. Nonetheless, prosecutors maintain that his actions caused billions in investor losses.
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