Celsius Creditors Demand Life Sentence for Alex Mashinsky

Among the more than 200 victims of the Celsius collapse, many have called for a life sentence for the company’s founder, Alex Mashinsky, according to Bloomberg.

“[Mashinsky] was aware of his actions and destroyed many lives. […] He should face punishment similar to Bernie Madoff and be sentenced to life imprisonment,” emphasized an investor who reported losing 1.5 BTC.

Another victim believes the case is “crucial for restoring faith in the justice system.”

“I eagerly await the day when [the founder of Celsius] burns in hell,” wrote a user who declared a loss of about $150,000.

73-year-old retired teacher Steven Levenberg recounted becoming a Celsius supporter after meeting Mashinsky in 2019. He and his wife sold their apartment and invested the proceeds in the gold-backed coin PaxGold, entrusting their assets to Celsius for safekeeping.

“We lost nearly $400,000, including what was left for a nursing home. Then came very dark days, nights, weeks, and months. My wife and I managed to stay together, although it was entirely my fault for investing so much in Celsius, against her intuition,” noted Levenberg.

The elderly teacher added that he considers a life sentence a fair punishment but would be satisfied with three years of imprisonment for the Celsius founder if all investors are compensated for their losses.

In December 2024, Mashinsky pleaded guilty to commodities fraud and manipulation of the CEL token prices:

“I said that Celsius had received approval from regulators. That was a lie. I lied about not selling my CEL tokens. I take full responsibility for my actions.”

The judge accepted the plea. Preliminary estimates suggest the Celsius founder faces up to 30 years in prison.

Sentencing for Mashinsky is scheduled for May 8. Initially, the hearing was set for April 8, but his lawyers requested a postponement to gather additional materials.