Former CEO Alex Mashinsky to face sentencing on May 8

Alex Mashinsky, former CEO of Celsius, will be sentenced by a U.S. court on May 8, 2025, following his guilty plea to securities and commodities fraud charges. He was accused of multiple charges, including wire fraud, securities fraud, commodities fraud, and market manipulation. 

The New York District Court filing from April 23, 2025, revealed an extension of the sentencing date to allow Mashinsky’s lawyer to present new evidence during his defense. Mashinsky has admitted to manipulating the value of Celsius’ native token, CEL, and misinterpreting the company’s operations.

Prosecutors on Wednesday submitted more than 200 statements from people who put their money into Celsius, coming from throughout the globe. While a few of the investors urged US District Judge John Koeltl to go easy on Mashinsky at his May 8 sentencing, the vast majority asked him to impose the highest possible punishment allowed by law – with some suggesting he spend the rest of his life in prison.

Two big schemes regarding fraud emerged during the federal investigation. The first involved misleading customers about Celsius’ investment strategies and financial performance. The investigators discovered that Mashinsky elevated the crypto token price through artificial means to benefit from selling his own CEL tokens, which he held secretly.

According to court records, Mashinsky made false statements that made Celsius appear both profitable and secure, resulting in massive user deposit growth. The assets Celsius handled reached a peak value of $25 billion in 2021, but the funds agreed to be refunded by Mashinsky amount to only $48 million.

The upcoming sentencing will create an important reference point for how law enforcement plans to regulate and monitor the cryptocurrency market as the industry evolves.