Hundreds of investors have asked a federal judge to impose a life sentence on CELSIUS CEO Alex Mashinsky for his role in the 2022 collapse of Crypto Lender.
Celsius Network investors are seeking a life sentence for co-founder and former CEO Alex Masski, who pleaded guilty to fraud after the collapse of the code lender in 2022.
In court this week, prosecutors filed impact statements for more than 200 victims ahead of the May 8 ruling, adding that Bloomberg urged the court to impose the toughest sentence permitted by law.
“The essence of cryptocurrency has been hurt along with my ambitions and dreams. I am troubled by mountains of debt and dishonor. The outlook I once envisaged is now unattainable due to Alex Masski and his timing’s fraudulent bankruptcy filing.”
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Still, some victims sought more generous writing. For example, Stephen Levenberg, a retired teacher who lost nearly $400,000 after putting his retired savings in Celsius, said he would accept a three-year sentence if Mashinsky returned the stolen funds.
Machineski’s lawyers are seeking a sentence of up to a year. Probation officers recommend 15 years, but the prosecutors have not yet made a final recommendation.
Celsius frozen withdrawal of client assets in June 2022. A month later, the company went bankrupt. Crypto Lender said it only has $167 million left in its account and will freeze all customer withdrawals and give it time to seek more funds.
Reports say Mashinsky and his wife withdraw an estimated $12 million in code from the celsius network before bankruptcy proceedings begin. Launched in 2018, Celsius grew to 200 employees and managed approximately $10 billion in crypto assets by 2021.
read more: celsius new appeal against a judge’s order that rejects a $444 million claim for FTX damages
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