Sentencing for Former Celsius CEO Scheduled for May 8

The sentencing of Alex Mashinsky, co-founder and former CEO of the bankrupt crypto firm Celsius, is set for May 8, according to a motion filed by the prosecution.

Prosecutors have requested the inclusion of over 200 victim statements related to the project’s collapse.

In December 2024, Mashinsky pleaded guilty to two of the seven charges—commodities fraud and manipulation of the CEL token prices. Preliminary estimates suggest he faces up to 30 years in prison.

The sentencing was initially scheduled for April 8. However, the entrepreneur’s lawyers requested a postponement to gather additional materials for his defense.

In June 2022, Celsius halted withdrawals, exchanges, and transfers between accounts “due to extreme market conditions.”

After filing for bankruptcy, the company reported a $1.2 billion balance sheet “hole.” By August, it was revealed that its liabilities exceeded assets by $2.85 billion.

In the fall, Mashinsky resigned as CEO. Later, the New York Attorney General accused him of defrauding investors of “billions of dollars.”

On July 13, 2023, U.S. authorities arrested the entrepreneur. He hired the same lawyers who defended the interests of Sam Bankman-Fried, founder of the bankrupt exchange FTX. The latter is serving a 25-year sentence in a U.S. federal prison for fraud.

Initially, the charges against Mashinsky carried a potential 115-year prison sentence.