- Alex Mashinsky, founder and former CEO of Celsius Network, could face a maximum sentence of up to 30 years.
- Celsius victims reveal how the collapse ruined their lives.
Over 200 victims of the failed crypto lender Celsius Network have submitted statements, urging a Federal judge to impose the harshest possible punishment on the company’s founder and former CEO, Alex Mashinsky.
He is set for sentencing next month for his involvement in the fraud that led to the company’s collapse in 2022.
Victims call for harsh punishment for Mashinsky
On the 23rd of April, a U.S. prosecutor submitted a 418-page report. The document, compiled by the prosecution’s office, contained over 200 victim impact statements from around the world.
These statements came from people across the globe, from Australia to New York, who lost their money after the Celsius bankruptcy.
These statements, collected by the prosecution, reveal how the collapse ruined users’ lives.
Some say they lost their life savings, while others saw their ambitions and dreams fade after believing and trusting Mashinsky’s promises that the platform was safe.
A victim named Brandon Lawrence, who lost 1.5 Bitcoin worth $140,000 in the collapse, stated,
“The very essence of cryptocurrency, along with my ambitions and dreams, has been tarnished.”
He further added,
“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. He was cognizant of his actions. He has devastated numerous lives and there are those who have taken their own lives because of him. He should face consequences akin to Bernie Madoff and be incarcerated for life.”
Another by Brian stated,
“I lost $7 M+ at current crypto prices due to the fraudulent activity of Celsius and Mashinsky. To add insult to injury. I am also being sued by Celsius because I took out some of my money about 70 days before Celsius went under. I am still defending myself o this lawsuit now, wasting more money and time. I am writing to you to request that justice is served.”
With all these statements, the majority requested the court to impose the harshest sentence, while two urged for leniency.
The collapse of Celsius
This bankruptcy wouldn’t have had much impact if Celsius hadn’t attracted users with impressive yields on crypto deposits and the ability to borrow against crypto collateral.
After this, The company simply halted its withdrawal services in mid-2022 during the crypto crash and filing for bankruptcy in July that year.
In July 2023, Mashinsky was charged and later admitted to securities and commodities fraud. He is now set to be sentenced on the 8th of May 2025, and faces a maximum sentence of up to 30 years in prison.
