Emre Yumlu 
The U.S. Department of Justice (DOJ) has called for a 20-year prison sentence for Alex Mashinsky, the former CEO and co-founder of the collapsed crypto lending platform Celsius. The agency emphasized that his crimes were not due to mistakes or carelessness, but rather a calculated fraud scheme orchestrated over several years.
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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