Celsius’ former CEO’s lawyers have filed a motion seeking a reduced one-year sentence and criticizing the US Department of Justice’s (DOJ) proposed 20-year punishment ahead of its upcoming sentencing hearing.
In an April 28 sentencing memo, prosecutors stated a 20-year sentence for the Celsius ex-CEO is recommended, as, unlike FTX’s Sam Bankman-Fried (SBF), Mashinsky was “indisputably old enough and experienced enough to better appreciate the crimes he was committing.”
As such, “the 25-year sentence for Bankman-Fried is therefore a meaningful data point for the Court to consider,” they concluded.
In yesterday’s motion, Mashinsky’s legal defense claimed that the memo was a “venom-laced submission” seeking a “death-in-prison” sentence that would see the former CEO finish his sentence when he’s 79.
His lawyers also stated that prosecutors have been trying to “dehumanize” Mashinsky, painting him as a predator, while ignoring his non-violent first-time offender status.
The government’s venom-laced submission recasts this case as one involving a predator with an intent to “target” victims, “harm” them, and “steal” their money. It concludes by recommending that a first time, non-violent offender who pled guilty and accepts responsibility receive a death-in-prison sentence.
Amid the 2022 crypto market crash, Celsius collapsed after the freezing of users’ withdrawals, leading the crypto company to file for bankruptcy.
Following the crash, the Securities and Exchange Commission (SEC) charged Mashinsky with fraud and manipulating the market, accusing the former CEO of deceiving investors. Authorities accused Mashinsky of marketing Celsius and its token CEL as a safe crypto investment where customer funds were protected.
A life sentence is also unnecessary because it would deprive Alex of credit for the noble life of service he led for his first 55 or so years. A life sentence would treat Alex as if his military service, his business service, his charitable works, and his good nature meant nothing in the sentencing scheme (…). A life sentence might be appropriate for the brazen, arrogant, scoundrel the government envisions. But that’s a caricature, it’s not Alex Mashinsky.
Based on this, the Celsius ex-boss’s lawyers asked the Court to impose a sentence of no more than 366 days during the May 8 hearing.
