Attorneys for Alex Mashinsky, the disgraced co-founder of crypto lending platform Celsius, are slamming the Department of Justice (DOJ)’s recommendation to keep their client behind bars for the rest of his life, instead asking for a lenient one-year sentence.
In a new court filing, Mashinsky’s lawyers say that the government paints an unfair picture that makes it seem like he’s a monster rather than a first-time non-violent offender.
“The Court should impose a sentence of no more than 366 days. 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.”
The lawyers further go on to note that the DOJ is completely ignoring Mashinsky’s past, which includes starting many successful businesses as well as serving for the Israeli army.
“There is no acknowledgment of the injuries and losses he suffered as a member of the Israeli Defense Forces. There is not even a passing nod to the businesses he founded over thirty years in heavily regulated environments that brought him success well before Celsius, with nary a blemish on his record.
The government would have the Court believe that Alex was born at 59 years old, a fiend. Ignoring his background is unsurprising; it renders all the more absurd the notion that a man dedicated to service throughout his life suddenly underwent a Jekyll-to-Hyde transformation.”
Mashinsky was arrested in July 2023 after being charged with violating securities law by the U.S. Securities and Exchange Commission (SEC). In December 2024, he pleaded guilty to perpetrating a multi-billion-dollar crypto fraud and other market manipulation schemes.
At the time, the DOJ said Mashinsky falsely represented Celsius as a safe and secure platform as well as exaggerated its potential for profitability, greatly inflating its user base.
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