Celsius’ Mashinsky lashes out at ‘death-in-prison sentence’
Alex Mashinsky, founder and former CEO of Celsius, criticized the US government's request for a 20-year prison sentence, labeling it a “death-in-prison sentence.” The Department of Justice (DOJ) seeks this lengthy sentence due to Mashinsky's role in misleading users and manipulating the price of Celsius (CEL), which could leave him imprisoned until age 79. His lawyers argue for a maximum of 366 days, citing his status as a nonviolent first-time offender with a clean business record. Mashinsky pleaded guilty to commodities fraud and price manipulation, profiting $48 million before Celsius's collapse in June 2022. The DOJ claims his actions were deliberate and harmful, supported by victim statements detailing financial losses. Celsius filed for Chapter 11 bankruptcy in July 2022, owing $4.7 billion, and a restructuring plan was approved in November 2023, repaying $2.53 billion to creditors. Former Celsius chief revenue officer Roni Cohen-Pavon also pleaded guilty to similar charges, with his sentencing pending Mashinsky's outcome.
