Attorneys for the former CEO of Celsius filed a motion to reduce one year’s sentence and criticized the U.S. Department of Justice (DOJ) for filing 20 years ahead of an upcoming sentencing hearing.
Celsius former boss Grand Slam verdict proposal
On Monday, Celsius co-founder Alex Mashinsky’s legal team asked the U.S. District Court in the southern New York area to consider reducing one year in prison for the former CEO. The memorandum of replies filed on May 5 seeks leniency from the U.S. court, saying the government recommended service hours are “prison death penalty.”
Last month, prosecutors filed an impact statement from more than 200 Celsius photography users to explain the emotional and financial impact of the company’s collapse. In addition, the U.S. government claims that Mashinsky is still dangerous due to “lack of remorse”.
In a sentence memorandum on April 28, prosecutors said it was recommended to sentence the former CEO of Celsius to 20 years, because unlike FTX’s Sam Bankman-Fried (SBF), Mashinsky “is undoubtedly old enough and experienced enough to better appreciate the crimes he promised.”
So, “So the 25-year prison sentence of French fries is a meaningful data point that the court considers.”
In yesterday’s motion, Masinski’s legal defense claimed the memorandum was a “venom statement” seeking a “prison death penalty” sentence that would allow the former CEO to complete his sentence at the age of 79.
His lawyer also said prosecutors have been trying to “dehumanize” Mashinsky, portraying him as a predator while ignoring his nonviolent first-time offender identity.
The government’s Venom Sequence Submission adapted the case into a case involving a predator with the aim of “targeting” the victims, “injuring” them and “stealing” their money. Conclusion is that nonviolent offenders who promised guilty and liability for the first time were recommended to be sentenced to death.
Excerpt from Alex Mashinsky's reply memorandum. Source: CourtListener
CryptoCompany Crash
In the cryptocurrency market crash in 2022, Celsius collapsed after user withdrawals were frozen, causing cryptocurrency companies to file for bankruptcy.
Following the crash, the Securities and Exchange Commission (SEC) accused Masshinsky of fraud and manipulating the market, accusing the former CEO of deceiving investors. Authorities accuse Mashinsky of marketing Celsius and its token CEL as a secure crypto investment in which it is protected.
In November 2024, the former CEO tried to dismiss the fraud charges against him but failed to convince the court to abandon them. In the second month, he pleaded guilty to two counts of fraud, pleaded guilty to high and securities fraud, and agreed to confiscate approximately $48 million in proceeds from those illegal activities as part of his plea agreement.
Approving the government’s sentencing request would create an “unreasonable gap” and show “Alex’s twisted and ruthless view,” according to documents on Monday, which would make him compare with criminals like SBF or Bernie Madoff.
Life imprisonment is also unnecessary, as it will deprive Alex of his credibility in his noble service life around 55 years. Life imprisonment will have no meaning to Alex’s treatment of his military service, his business services, his charitable works, and his kindness in the sentencing program (…). Life imprisonment may fit the barbaric, arrogant, lifelessness envisioned by the government. But this is a comic, not Alex Mashinsky.
Based on this, the lawyer of the former boss of Celsius asked the court to sentence no more than 366 days in a May 8 hearing.
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