Alex Mashinsky, the founder of Celsius, has been sentenced to 12 years in prison due to his involvement in manipulating Celsius tokens. Interestingly, he will begin serving his sentence only after his daughter’s wedding.
According to reports from the Inner City Press, Judge Koeltl not only sentenced Mashinsky but also ordered the confiscation of $48 million in assets and nine properties.
Before the final decision was made, it was noted that Judge Koeltl had permitted Mashinsky to travel to Tennessee for his daughter’s wedding in Memphis, which is scheduled for later this month.
This means his incarceration won’t start until September 12th.
In discussions surrounding the case, Mashinsky’s lawyer expressed concerns that the 15-year sentence imposed on a veteran was potentially excessive. He noted that it doesn’t seem equivalent to penalties in other crypto fraud cases, like Onecoin.
Additionally, Mashinsky served three years in the Israeli Army before making his way to the United States.
There were emotional moments during the trial, with Mashinsky reportedly shedding tears and claiming he never intended to harm anyone. He mentioned wanting to see the victims hold him accountable.
Earlier this month, his legal team argued that a 20-year sentence constitutes “a prison death sentence,” suggesting his lack of a criminal history should be taken into account. However, prosecutors countered that Mashinsky’s actions were pre-planned and resulted in significant financial and emotional damage to numerous victims.
A participant in the proceedings highlighted the disparity faced by victims, questioning whether Mashinsky had considered the impact of his actions compared to those who had lost loved ones through suicide or financial ruin.
Prosecutors called for a minimum of 20 years in prison to ensure that the severity of the crime is acknowledged, promoting respect for the law and serving as a deterrent.
Judge Koeltl acknowledged mitigating factors in the case, such as Mashinsky’s refugee status and military background, but still emphasized the necessity for a substantial sentence for just retribution, ultimately imposing a 12-year term.
Mashinsky had pleaded guilty to two counts of fraud in December, involving the manipulation of Celsius tokens, and had accepted a plea agreement which indicated a possible sentence of 30 years or fewer.
