Former Celsius Network CEO Alex Mashinsky’s sentencing has been delayed by a month at the request of his legal team. Mashinsky, who has pleaded guilty in a fraud case, was originally scheduled to be sentenced on April 8 but will now face sentencing on May 8. The delay was requested to allow additional time for preparation, given the complexities of the case and the volume of material that needs to be reviewed.
One of the main reasons cited for the delay is the extensive presentence investigation report (PSR), which his defense team needs more time to review. In addition, there are over 170 victim impact statements that need to be considered, as well as Mashinsky’s legal obligations in the Celsius bankruptcy case.
Mashinsky is also responding to a 180-page complaint in an adversary proceeding related to the Celsius bankruptcy, which his attorneys claim is taking up a significant amount of his time and resources. The government has agreed to a one-week extension for objections to the PSR but opposes delaying the sentencing date, arguing that victims of the case deserve finality.
The case against Mashinsky, United States v. Mashinsky, revolves around allegations that he misled investors and defrauded customers before the collapse of Celsius Network. Mashinsky could potentially face a substantial prison term if convicted.
Mashinsky was arrested in July 2023 and charged with securities fraud, commodities fraud, and wire fraud in connection with Celsius Network. He pleaded guilty to two of the charges in December 2024, with a sentencing guideline of up to 30 years in prison.
Celsius Network, founded in 2017, marketed itself as a high-yield crypto lending platform that allowed users to earn interest on deposited digital assets. However, the company faced scrutiny after the 2022 crypto market downturn revealed liquidity issues. Celsius filed for Chapter 11 bankruptcy in July 2022, leaving customers unable to access their funds.
Prosecutors allege that Mashinsky falsely portrayed Celsius as a safe and profitable alternative to traditional banks while concealing the company’s financial struggles. They claim that he misused customer funds to prop up the company’s failing balance sheet and cashed out millions for himself before the collapse. The US Securities and Exchange Commission, the Commodity Futures Trading Commission, and the Federal Trade Commission also filed civil charges against him.
The sentencing delay for Mashinsky will allow his defense team more time to prepare a sentencing submission that accurately reflects his views on the offense conduct. Judge John G. Koeltl has yet to rule on the request for the postponement.