Prosecutors Seek Up To 20 Years In Prison For Celsius Founder Alex Mashinsky

Federal prosecutors are pushing for a 20-year prison sentence for Celsius Network founder Alex Mashinsky, alleging he orchestrated a years-long fraud scheme that bilked customers out of billions. The Department of Justice filed a sentencing memorandum ahead of next week’s court appearance, painting Mashinsky as the architect of a deceptive operation that misrepresented how Celsius handled user deposits.

The case highlights the regulatory reckoning facing crypto’s wild west era. While no specific cryptocurrencies or exchanges were implicated in the filing, the Celsius collapse sent shockwaves through digital asset markets when it froze withdrawals in 2022. The outcome could set precedents for how authorities handle similar cases involving crypto lending platforms.