Hundreds of Investors Call for Life Sentence for Celsius CEO Alex Mashinsky
Following the collapse of crypto lender Celsius Network in 2022, more than 200 investors have urged a federal judge to impose a life sentence on co-founder and former CEO Alex Mashinsky for his role in the company’s downfall.
Victim Impact Statements
Prosecutors recently submitted over 200 victim impact statements to the court ahead of Mashinsky’s upcoming sentencing on May 8. The majority of these statements advocate for the harshest punishment possible under the law.
“The very essence of cryptocurrency, along with my ambitions and dreams, has been tarnished. I’m saddled with a mountain of debt and disgrace. The prospects I once envisioned are now unattainable, all due to Alex Mashinsky and his ill-timed bankruptcy filing.” – Brandon Lawrence, a Celsius investor
Varied Sentencing Requests
While many victims are pushing for a severe sentence, some, like retired teacher Stephen Levenberg, have expressed willingness to accept a three-year sentence if Mashinsky returns the stolen funds. Mashinsky’s defense team is advocating for a sentence of no more than one year, while probation officers have recommended 15 years.
Collapse of Celsius Network
Celsius Network froze client asset withdrawals in June 2022 before ultimately declaring bankruptcy a month later. The company cited a lack of funds, with only $167 million remaining in its accounts. Reports indicate that Mashinsky and his wife withdrew approximately $12 million in crypto from the network prior to the bankruptcy filing. At its peak in 2021, Celsius managed around $10 billion in crypto assets and employed 200 individuals.
As the sentencing date approaches, the fate of Alex Mashinsky hangs in the balance, with investors seeking justice for their losses in the collapse of Celsius Network.
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