US prosecutors file over 200 victim statements in their case against Celsius’s Alex Mashinsky, to be sentenced May 8
The post US prosecutors file over 200 victim statements in their case against Celsius’s Alex Mashinsky, to be sentenced May 8 appeared on BitcoinEthereumNews.com.
US federal prosecutors have submitted more than 200 victim impact statements to a Manhattan federal court in the criminal case against Alex Mashinsky, the founder and former CEO of Celsius Network. The statements, spanning over 400 pages, chronicle the financial and emotional toll suffered by customers who entrusted their funds to the beleaguered crypto lender. Mashinsky, accused of falsifying Celsius reserves before it fell, is scheduled to be sentenced on May 8. In a letter dated April 23, newly appointed interim US Attorney for the Southern District of New York, Jay Clayton, informed the court that his office had collected the statements to show the extent of the damage Celsius’s collapse caused. Victims claim trusting Mashinsky was disastrous Before its collapse, Celsius allowed users to deposit crypto and earn high yields while also offering loans backed by crypto collateral. The platform attracted hundreds of thousands of retail investors globally, many of whom were lured by Mashinsky’s messages about financial empowerment and decentralization. However, in June 2022, when the crypto market had a prolonged bearish period, Celsius froze withdrawals because of “extreme market conditions.” By July, the company filed for bankruptcy, leaving billions in user assets trapped. The victim letters sent to the court, written to Wendy Olsen, Victim/Witness Coordinator in the US Attorney’s Office. They talked about how Celsius caused stress in families, a lot of debt, and the loss of retirement plans. Many of the statements say that Mashinsky lied to investors about Celsius’s financial health, even though the company was almost bankrupt. The victim’s letter submitted to the New York Court. | Source: Courtlistener Brian wrote that he had three accounts with Celsius and lost more than $7 million, which is how much crypto is worth now. “To add insult to injury, I am also being sued by Celsius…
Filed under: News - @ April 24, 2025 9:28 am