Ahead of Alex Mashinsky’s May 8 sentencing, U.S. federal prosecutors have submitted more than 200 victim impact statements detailing the damage caused by the Celsius Network collapse. Interim U.S. Attorney for Manhattan, Jay Clayton, confirmed the filings in an April 23 letter to the court, noting that these statements total over 400 pages of emotional and financial appeals from Celsius users.
Victims described devastating financial losses, with some saying they had trusted Mashinsky with their entire life savings, relying on his public assurances about the safety and reliability of the crypto lending platform.
Celsius’ Collapse and Legal Fallout
Celsius Network, once a major player in the crypto lending space, allowed users to deposit cryptocurrencies for yield and take out loans using crypto as collateral. However, during the crypto market crash in mid-2022, Celsius froze withdrawals and declared bankruptcy by July of that year.
Mashinsky was charged in July 2023 with multiple counts of fraud, but entered a plea deal in December, admitting guilt to one count each of commodities and securities fraud. These charges each carry a potential sentence of up to 30 years if served consecutively.
Calls for Justice and Requests for Mercy
While the majority of the victim statements push for the maximum sentence, a few stand out for requesting leniency. One individual claimed Mashinsky was unfairly targeted by disgraced FTX founder Sam Bankman-Fried, while another, Artur Abreu, argued that macroeconomic conditions—not criminal intent—were primarily to blame for Celsius’ downfall.
Despite these calls for leniency, many others expressed deep frustration over the limited restitution received through bankruptcy proceedings and the breach of trust they felt.
Mashinsky, in his own sentencing brief filed April 17, requested no more than a 366-day prison term, citing his good intentions and clean prior record.
The Justice Department is expected to file its sentencing recommendation on April 24. The court will consider both the government’s position and the numerous victim impact statements before handing down Mashinsky’s final sentence on May 8.
