- Alex Mashinsky, founder and former CEO of Celsius Network, could incur a maximum sentence of up to 30 years.
- The victims of Celsius reveal how the collapse ruined their lives.
More than 200 victims of the failure of the lender of Celsius Network cryptography submitted declarations, urging a federal judge to impose the most severe penalty as possible on the founder and former CEO of the company, Alex Mashinsky.
He is ready to condemn next month for his involvement in fraud that led to the collapse of the company in 2022.
Victims call for severe sanctions for Mashinsky
On April 23, an American prosecutor submitted a 418 -page report. The document, compiled by the accusation office, contained more than 200 impact declarations on victims around the world.
These statements came from people around the world, from Australia to New York, which lost their money after the Celsius bankruptcy.
These declarations, collected by the accusation, reveal how the collapse of the life of users ruined.
Some say they have lost their savings, while others have seen their ambitions and their dreams fading after having believed and trusting the promises of Mashinsky that the platform was safe.
A victim by the name of Brandon Lawrence, who lost 1.5 Bitcoin worth $ 140,000 in collapse, said, said
“The very essence of cryptocurrency, as well as my ambitions and my dreams, were tarnished.”
He also added,
“I am struggling with a mountain of debts and shame. The prospects that I formerly considered are now inaccessible, all due to Alex Mashinsky and his bankruptcy file at an inappropriate level.
Another by Brian said,
“”I lost $ 7 at current cryptography prices due to the fraudulent activity of Celsius and Mashinsky. To add the insult to the injury. I am also continued by Celsius because I removed part of my money about 70 days before Celsius was done. I always defend myself from this trial now, wasting more money and time. I am writing to ask that justice be done. »»
With all these declarations, the majority asked the court to impose the most severe sentence, while two asked for the leniency.
The collapse of Celsius
This bankruptcy would not have had much impact if Celsius had not attracted users with impressive yields on cryptographic deposits and the ability to borrow against cryptographic collateral.
After that, the company simply interrupted its withdrawal services in mid-2010 during the Krach Crypto and filed for a bankruptcy in July of the same year.
In July 2023, Mashinsky was charged and admitted later in fraud in terms of basic securities and products. He should now be sentenced on May 8, 2025 and faces a maximum sentence of 30 years in prison.
