Taking a Hardline on Crypto Lender's Founder
Former Celsius CEO set for sentencing in May, as over 200 claimants demand retribution
Alyssa Kim & Aditya Sharma
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Alex Mashinsky, the brains behind the downfall of crypto lender Celsius Network, could be staring at a 30-year jail term. The CEO, who might be sentenced in May 2025, has been found guilty of securities and commodities fraud.
Victims Sound Off: "Give Him the Book!"
In a hefty 418-page report submitted last April, U.S. prosecutors presented over 200 victim impact statements. From diverse global locations like Australia to New York, these statements came from individuals who lost their hard-earned money following the Celsius bankruptcy.
These victims share heart-wrenching stories of lost dreams, shattered ambitions, and the devastating impact on their lives. Brandon Lawrence, a victim who lost 1.5 Bitcoin worth $140,000, expressed deep disappointment. "The crypto dream, my aspirations, and hopes—they've all turned into tarnished relics," he said.
Burdened with a mountain of debt and tarnished reputation, Brandon Lawrence’s future objectives now seem out of reach, attributing the unfortunate turn of events to Mashinsky and the untimely bankruptcy filing.
Another victim, Brian, shared how Celsius' fraudulent actions led to a staggering loss of $7M+ (current crypto prices). He further added that to add insult to injury, he's been sued by Celsius due to his early withdrawal, despite still battling this lawsuit and the financial costs associated with it.
In light of the submitted statements, most victims are clamoring for the court to impose the harshest sentence while only two plead for leniency.
The Downfall of Celsius
Had it not been for the alluring offers of impressive yields on crypto deposits and the option to borrow against crypto collateral, the collapse of Celsius wouldn't have caused much of an impact. However, the company's sudden withdrawal service halt during the 2022 crypto crash and subsequent bankruptcy filing in July upset many users.
The start of May 2023 marked the charges against Mashinsky, followed by his guilty plea later on. With a potential maximum sentence of 30 years in prison, the Court will deliver its verdict on May 8, 2025.
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- The guilty plea by Alex Mashinsky, founder of the collapsed crypto lender Celsius Network, could potentially sentence him to 30 years in prison, as decided by the court on May 8, 2025.
- In a lengthy report submitted last April, U.S. prosecutors presented over 200 victim impact statements from individuals worldwide, including Australia and New York, who have been affected by the Celsius bankruptcy.
- Brandon Lawrence, one of the victims who lost 1.5 Bitcoin worth $140,000, expressed deep disappointment, stating that his aspirations and dreams have turned into tarnished relics.
- Another victim, Brian, suffered a staggering loss of $7M+ due to Celsius' fraudulent actions and is still grappling with a lawsuit and financial costs associated with it.
- Despite the guilt pleas from most victims, two have requested leniency, while the majority is demanding the court to impose the harshest sentence possible.
- Had it not been for the attractive offers of high yields on crypto deposits and the option to borrow against crypto collateral, the collapse of Celsius would not have caused significant impact.
- The CME's XRP Futures, set to debut in May, is associated with a potential game-changer for the altcoin, marking a significant event in the general-news and technology sectors, including crime and justice discussions.
