The post Mashinsky’s 12-year sentence sets tone of enforcement in Trump era appeared on BitcoinEthereumNews.com.

The US federal court for the Southern District of New York has sentenced former Celsius CEO Alex Mashinsky to 12 years in prison for fraud. Mashinsky’s legal team sought a light sentence. They highlighted his spotless record before the Celsius incident, along with his military service and willingness to plead guilty. But US prosecutors were less inclined to leniency, suggesting on April 28 that the judge deliver a 20-year sentence for his actions. Betting markets predicted a light sentence ahead of the May 8 hearing. Polymarket showed only 11% odds for a 20-year sentence or higher. Source: Polymarket President Donald Trump began his second term with high-profile pardons of crypto executives, signalling that his administration may bring leniency to crypto fraudsters like Mashinsky. His sentencing today, however, suggests otherwise. Trump’s DOJ wants Mashinsky sentence to serve as a warning Crypto-related crimes have their limits, according to the current US Department of Justice. Jay Clayton, the Trump-nominated US attorney leading the prosecution, said on April 28 that the suggested 20-year sentence serves as a “critical warning to other entrepreneurs, executives, and promoters in the cryptocurrency industry and in any future industry as-yet unconceived: that fraud will be punished severely, regardless of the technology or industry in which it occurs.” Bitcoin advocate Jameson Lopp quotes the prosecution’s argument that Mashinsky targeted retail investors. Source: Jameson Lopp Clayton argued that a strong sentence was warranted as the fraud targeted unsophisticated retail investors rather than institutional parties with protections and expertise. Mashinsky “preyed on ordinary individuals who relied on his promises of safety and financial security.”  The Mashinsky defense team drew attention to Mashinsky’s character, highlighting his long career in business, devotion to family and service with the Israel Defense Forces.  His lawyers also drew distinctions between Mashinsky’s case and that of Bankman-Fried, claiming,…

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Filed under: News - @ May 9, 2025 2:25 pm