US Prosecutors Reject Celsius Ex-CEO's Bid to Vacate Sentence

Alex Mashinsky, former CEO of defunct cryptocurrency lending platform Celsius, is facing opposition from US federal prosecutors as he seeks to vacate his 12-year sentence for fraud and market manipulation. In a recent filing, prosecutors James McDonald and Allison Nichols claimed that many of Mashinsky's legal arguments were 'without merit' and argued against claims of ineffective assistance of counsel.

Mashinsky had informed the court in May that he would be proceeding pro se and filed a motion to vacate his conviction and sentence. However, prosecutors argue that he has not provided sufficient evidence to support his allegations and that his petition should be denied without further fact-finding.

The case against Mashinsky and former Celsius colleague Roni Cohen-Pavon began in 2023, after the collapse of Celsius in 2022. Both men pleaded guilty to commodities fraud and securities fraud related to 'manipulative and deceptive devices' at Celsius. Mashinsky was ordered to pay $48 million in forfeiture at sentencing and agreed to pay an additional $10 million as part of a separate settlement with the US Federal Trade Commission.