Former Celsius CEO ALEX MASHINSKY is reportedly facing up to 20 years in prison for his involvement in the downfall of the once-prominent cryptocurrency lending platform.
Court documents reveal prosecutors have requested a minimum 20-year sentence for Mashinsky following his guilty plea to charges related to fraudulent activities leading to massive financial losses for Celsius customers.
In a detailed filing, prosecutors highlighted Mashinsky’s alleged deceptive practices that resulted in billions lost by customers. “Alexander Mashinsky committed a massive fraud through calculated deception, causing devastating financial and emotional harm to thousands,” stated the court document. “He enriched himself while shattering lives and continues to evade accountability.”
Last December, Mashinsky pleaded guilty to charges of securities fraud and commodities fraud. As part of his plea agreement, he agreed to forfeit $48 million in profits accrued from selling the CEL token.
The Department of Justice emphasized Mashinsky’s role in artificially inflating CEL’s price to benefit from its sale while misleading the public about his actions. He profited significantly by covertly unloading his holdings on unwitting investors.
The verdict for Mashinsky is expected on May 8, marking a pivotal moment in the saga of Celsius’ collapse.
Source: U.S. Attorney’s Office for the Southern District of New York.