Celsius Network LLC. Source: photo for everything - stock.adobe.com

Key Takeaways:

The U.S. DOJ is seeking a 20-year prison sentence for Celsius founder Alex Mashinsky for orchestrating a multibillion-dollar fraud.
Mashinsky admitted to fraudulent conduct resulting in over $550 million in customer losses and personally profiting $48 million.
The sentencing hearing is set for May 8, with over 200 victim impact statements already submitted.

The U.S. Department of Justice (DOJ) is seeking a 20-year prison sentence for Alex Mashinsky, founder and former CEO of the now-bankrupt crypto lending platform Celsius.

In a sentencing memorandum filed on April 28, the DOJ cited Mashinsky’s role in a multibillion-dollar fraud that led to massive losses for Celsius customers.

🚨JUST IN: US DOJ SEEKS 20-YEAR SENTENCE FOR CELSIUS FOUNDER MASHINSKY OVER $4.7B FRAUD
— BSCN (@BSCNews) April 29, 2025

After the platform froze withdrawals on June 12, 2022, users lost access to approximately $4.7 billion in digital assets.

Mashinsky admitted guilt in December 2024, acknowledging that he orchestrated schemes causing over $550 million in damages while personally profiting by more than $48 million.

The DOJ emphasized that Mashinsky’s actions were deliberate and deceptive, not accidental or negligent.

His sentencing hearing is scheduled for May 8, overseen by U.S. District Judge John Koeltl.

Around 200 victim impact statements have been submitted ahead of the hearing.

Mashinsky’s co-founders, Shlomi Daniel Leon and Hanoch Goldstein, were also implicated in Celsius’s collapse.

Leon resigned in October 2022, and in July 2023, the Federal Trade Commission (FTC) filed charges against all three executives, resulting in a $4.7 billion fine against the company.

The DOJ is pressing for a strong sentence to reflect the scale and intentional nature of the fraud.