Crypto Crook Mashinsky’s Last-Ditch Effort to Delay Prison Sentence

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Alex Mashinsky, the former CEO of Celsius, is pulling out all the stops in a desperate attempt to delay his sentencing. His legal team has requested the court to move the sentencing date from April 8 to May 8, 2025, claiming they need more time to prepare their case.

This request comes after Mashinsky pleaded guilty to commodities fraud and securities fraud in December 2024. Once hailed as a pioneer in the crypto lending industry, Mashinsky now finds himself at the center of a massive fraud scandal.

Investors Left High and Dry as Mashinsky Buys Time

While thousands of former Celsius users are still grappling with financial losses and awaiting justice, Mashinsky is focused on extending his freedom.

According to a court filing at the United States District Court for the Southern District of New York on February 5, his lawyers claimed that the additional month is crucial for preparing a sentencing submission that fully presents his stance on the case.

“The defense wants to ensure that it has sufficient time to prepare a sentencing submission that accurately presents Mr. Mashinsky’s views on his offense conduct, along with the many other factors to be considered by the Court in weighing an appropriate sentence,” his legal team wrote.

However, federal prosecutors have opposed the delay, stating that the request is premature. They have, at most, agreed to a one-week extension, signaling their reluctance to let Mashinsky push back his sentencing any further.

Mashinsky was arrested in July 2023, facing seven counts of fraud, conspiracy, and market manipulation linked to his role at Celsius. After months of legal battles, he ultimately pleaded guilty on December 3, 2024, admitting to misleading investors about Celsius’s financial health and manipulating the price of its native token, CEL. Under the plea agreement, he faces up to 30 years in prison and has agreed to forfeit $48 million in illicit gains.

Regulators Tighten the Noose on Crypto Fraudsters

Meanwhile, Mashinsky’s downfall is part of a broader regulatory crackdown on crypto-related fraud, as authorities ramp up efforts to bring accountability to the sector.

One of the most high-profile cases was that of Sam Bankman-Fried (SBF), the disgraced founder of FTX, who was convicted in November 2023 on multiple fraud charges related to his exchange’s collapse. In March 2024, the once upon a time crypto white knight was sentenced to 25 years in prison, marking one of the harshest punishments ever handed down in the industry.

Similarly, authorities also cracked down on Binance, the world’s largest crypto exchange by market capitalization for violations of anti-money laundering laws, sanctions breaches, and operating an unlicensed money-transmitting business.

The firm later admitted to the crimes and agreed to settle the case for more than $4 billion. The settlement involved its then CEO Changpeng Zhao (CZ), serving a four months prison time in the US for failing to implement adequate security measures on the platform during his time at Binance.

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2025-02-07 00:23