The former lawyers of Celsius de Celsius filed a request requesting a condemnation to a reduced year and criticizing the 20 -year sanction of the United States Ministry of Justice (DoJ) before its hearing for determining the sentence to come.
Proposal for a sentence of “death in prison” of Celsius ex-boss slams
On Monday, the legal team of the co-founder of Celsius, Alex Mashinsky, asked the American district court in the South District of New York to consider a reduced one year sentence for the former CEO. The memorandum of response tabled on May 5 requires the leniency of the American court, calling for the service recommended by the government of “death penalty in prison”.
Last month, prosecutors submitted impact declarations on victims of more than 200 Celsius users explaining the emotional and financial effects of the company’s collapse. In addition, the American government alleged that Mashinsky was still dangerous because of its “lack of remorse”.
In a memo of determining the sentence on April 28, the prosecutors declared that a 20-year sentence for ex-Celli Celsius is recommended, because, unlike Sam Bankman Fried (SBF) of FTX, Mashinsky was “old enough and sufficiently experienced to better appreciate the crimes he was committing”.
As such, “the sentence of 25 years for banks is therefore a significant data point that the court must consider,” they concluded.
In yesterday’s request, the legal defense of Mashinsky said that the memo was a “venom submission” asking for a “death in prison” which would see the former CEO finish his sentence at 79 years old.
His lawyers also said the prosecutors were trying to “dehumanize” Mashinsky, painting him as a predator, while ignoring his offender status for the first time.
Government’s submission to venom redesign this case as a case involving a predator with the intention of “targeting” the victims, “injuring” them and “stealing” their money. He concludes by recommending that a first non -violent delinquent who pleaded guilty and accepts the responsibility of receiving a death penalty in prison.
Excerpt from Alex Mashinsky's reply memorandum. Source: CourtListener
The collapse of the Crypto company
In the middle of the crash of the 2022 cryptography market, Celsius collapsed after freezing user withdrawals, leading the cryptocurrency to file for bankruptcy.
Following the accident, the Securities and Exchange Commission (SEC) accused Mashinsky of fraud and market manipulation, accusing the former CEO of deceiving investors. The authorities accused Mashinsky of Marketing Celsius and its symbolic CEL as a safe crypto investment where customer funds were protected.
In November 2024, the former CEO attempted to reject the accusations of fraud against him but did not convince the court to drop them. The following month, he pleaded guilty to two chiefs of fraud, admitting that he had committed basic products and fraud in securities and agreed to lose around 48 million dollars as a product of these illegal activities as part of his advocacy agreement.
According to the Monday document, the granting of the government’s request for determination would create an “unjustified disparity”, displaying a “distorted and ruthless view of Alex”, which would compare him to criminals like SBF or Bernie Madoff.
A perpetuity prison sentence is not necessary either because it would deprive Alex of credit for the noble life of service which he led for his first 55 years approximately. A perpetuity prison sentence would deal with Alex as if his military service, his sales service, his charitable works and his good nature meant nothing in the program to determinate the sentence (…). A life imprisonment could be appropriate for the cheeky, arrogant scoundrel, the government is considering. But it’s a caricature, it’s not Alex Mashinsky.
On the basis of this, the lawyers of the ex-boss Celsius asked the court to impose a sentence of 366 days during the hearing of May 8.
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