According to a 97-page court filing dated April 28, Mashinsky deliberately misled thousands of Celsius users, which resulted in massive financial losses. The filing noted that customers lost access to nearly $4.7 billion worth of crypto assets when Celsius froze withdrawals on June 12, 2022.

“Alexander Mashinsky led a multi-year campaign of deceit, self-enrichment, and exploitation that devastated thousands and caused billions in losses. A 20-year prison sentence is a fitting consequence for his actions,” prosecutors stated.

$48 Million in Personal Profits

In a plea deal finalized in December 2024, Mashinsky admitted to being the mastermind behind the scheme and acknowledged that he personally made over $48 million while the total losses topped $550 million.

The DOJ emphasized that his fraudulent behavior was “not a matter of bad luck or naivety,” but instead involved intentional deception and theft to pursue personal wealth.

Sentencing Hearing Set for May 8

The sentencing hearing is scheduled for May 8 and will be overseen by U.S. District Judge John Koeltl in the Southern District of New York. According to prosecutors, more than 200 victims have submitted statements detailing their experiences and losses.

Other Celsius Co-Founders Also Named

While Mashinsky is seen as the central figure in the case, other Celsius co-founders were also implicated. Shlomi Daniel Leon, who co-founded Celsius in 2017, stepped down from his role in October 2022, just months after the company’s collapse.

In July 2023, both Leon and another co-founder, Hanoch Goldstein, were charged by the Federal Trade Commission, which also issued a $4.7 billion penalty against the now-bankrupt firm

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A Nvidia spokesman told CNBC on Sept. 4, “We have inquired with the U.S. Department of Justice and have not been subpoenaed.” The corporation further underlined that it is ready to answer any regulatory inquiries in cooperation. The spokesman said, “Nvidia wins on merit, as reflected in our benchmark results and value to customers, who can choose whatever solution is best for them.”

According to sources from Bloomberg and Reuters, the DOJ had sent subpoenas to Nvidia and other businesses as part of an antitrust probe; the rejection follows The probe supposedly focuses on Nvidia’s hegemony in the chipmaking industry and if it penalizes consumers for not just adopting its artificial intelligence technologies. On Tuesday, the announcement erased $278 billion from Nvidia’s market value, the worst day loss ever.

Though the first market response is negative, Nvidia’s stock is up 120.5% this year thanks in great part to growing demand for its processors, especially in artificial intelligence uses. Benefiting from the AI surge, Nvidia reached an all-time high in June at $131.88.

Still, Nvidia is also under legal hot fire, including a possible class-action case before the U.S. Supreme Court. According to the complaint, CEO Jensen Huang minimized the importance of graphics processing unit (GPU) sales to cryptocurrency miners while Nvidia hid nearly $1 billion in sales to those miners.

Though for now the firm’s price has found some stability after the rejection of the subpoena allegations, the DOJ apparently probing Nvidia’s business methods might cause further scrutiny of the company.

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