Celsius Collapse: Mashinsky Faces 20-Year Sentence Over Crypto Fraud

Prosecutors said that his actions caused major financial losses for thousands of customers who trusted the platform with their digital assets.

The DOJ filed a 97-page document on April 28 outlining their request. They said Mashinsky led a "years-long campaign of lies and self-dealing" that ended with users losing billions of dollars when Celsius froze withdrawals in June 2022.

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According to the filing, around $4.7 billion in customer funds became locked after the platform stopped operating.

The prosecutors noted that Mashinsky did not simply make mistakes or act carelessly. Instead, they said he made "deliberate, calculated decisions to lie, deceive, and steal in pursuit of personal fortune".

The filing also stressed that Mashinsky’s behavior damaged trust in the wider cryptocurrency industry. Prosecutors believe that a harsh sentence would send a message that such behavior will not be tolerated, especially in areas where regulations are still developing.

The court is scheduled to sentence Mashinsky on May 8. Judge John Koeltl from the Southern District of New York will oversee the hearing, which may also include decisions on financial penalties to recover some of the funds taken.

Mashinsky’s legal problems grew after he pleaded guilty in December 2024. In court, he admitted to leading the fraudulent activities at Celsius. The DOJ said the losses from his crimes totaled more than $550 million, and that he personally made over $48 million during the scheme.

On April 23, Jay Clayton, the newly appointed acting US Attorney for Manhattan, submitted over 200 written statements to the court regarding Mashinsky’s case. What did they say? Read the full story.