Former Celsius CEO Alex Mashinsky Seeks 1-Year Sentence, Rejects DOJ’s 20-Year Demand

In a May 5 court filing, Mashinsky’s legal team asked the New York district court to impose a sentence of no more than 366 days, arguing that his conduct does not warrant the harsh penalty sought by the U.S. Department of Justice (DOJ).

Mashinsky, 59, pleaded guilty in December 2024 to commodities fraud and market manipulation. He admitted to making $48 million from the sale of CEL tokens ahead of Celsius’ collapse in June 2022. Prosecutors allege he orchestrated a long-running scheme to deceive and defraud thousands of retail investors, many of whom lost their life savings.

The DOJ’s sentencing memo, filed on April 28, accused Mashinsky of leading a “predatory campaign rooted in greed,” deliberately targeting “everyday people” and causing widespread financial harm. The department is pushing for a 20-year sentence to reflect the severity and scope of the misconduct.

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In response, Mashinsky’s lawyers painted a more nuanced portrait of the former tech entrepreneur. They cited his family’s history as Soviet Jewish refuseniks, his military service in the Israeli Defense Forces, and his three-decade business career, including work in regulated industries, as mitigating factors.

“The government’s submission disregards that Alex is a real-life person with complexities, subtleties and nuances,” the defense wrote, “and instead takes a black-and-white, blunt and reductive approach to describe his conduct in savage and primal terms.”

Mashinsky’s sentencing is scheduled for May 8 in New York.

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