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Prosecutors blast ex-Celsius CEO Mashinsky’s bid to vacate sentence

Created at 18 Aug · 5:06 PM1 source↑ Market-relevant
IN SHORT

US prosecutors have urged a federal court to deny Alex Mashinsky's motion to vacate his 12-year sentence for fraud and market manipulation related to his time as CEO of Celsius. They argue his claims are 'without merit' and blame others.

Key Numbers

12-yearsentence for Alex Mashinsky
144 monthsprison sentence for Mashinsky
$48 millionforfeiture ordered for Mashinsky
$10 millionsettlement with FTC

Who's Involved

Alex Mashinsky
Former CEO of Celsius, currently serving a 12-year sentence for fraud
James McDonald
US Attorney for the Southern District of New York
Allison Nichols
Assistant US Attorney
Roni Cohen-Pavon
Former Celsius Chief Revenue Officer, sentenced to time served
Celsius
Defunct cryptocurrency lending platform
SDNY
US Prosecutors in the Southern District of New York

↳ Why This Matters

The legal battle highlights ongoing efforts by former crypto executives to challenge convictions and sentences, impacting investor confidence and regulatory oversight in the digital asset space.

Key facts

  • US prosecutors have opposed Alex Mashinsky's motion to vacate his 12-year prison sentence.
  • Prosecutors stated that Mashinsky's legal arguments are 'without merit' and pushed back against claims of ineffective counsel.
  • Mashinsky, former CEO of Celsius, pleaded guilty to commodities fraud and securities fraud.
  • He was sentenced in May 2025 to 144 months in prison and ordered to pay $48 million in forfeiture.
  • Mashinsky is representing himself in the current legal proceedings.

Federal prosecutors in the Southern District of New York have urged a court to deny a motion filed by Alex Mashinsky, the former CEO of Celsius, to vacate his 12-year prison sentence. In a filing on Friday, prosecutors stated that Mashinsky's arguments were "without merit" and pushed back against his claims of ineffective assistance of counsel.

Mashinsky, who is representing himself, informed the court in May that he would proceed pro se and filed the motion to vacate, which included allegations related to FTX and his former colleague, Roni Cohen-Pavon. Prosecutors noted that Mashinsky has not submitted a sworn declaration to support his claims and that he is blaming others for Celsius's problems rather than asserting factual innocence.

Mashinsky was sentenced in May 2025 to 144 months in prison after pleading guilty to commodities fraud and securities fraud. Cohen-Pavon, who provided substantial assistance to the prosecution, received a time-served sentence in May. Celsius was one of several crypto companies that filed for bankruptcy in 2022.

Additionally, the US Commodity Futures Trading Commission (CFTC) permanently banned Mashinsky from trading in commodities markets in June. The US Securities and Exchange Commission (SEC) also has an ongoing civil action against Mashinsky, with settlement discussions reportedly underway as of July 30.

Frequently asked questions

Alex Mashinsky is accused of commodities fraud and securities fraud related to manipulative and deceptive practices at Celsius.

Celsius was a cryptocurrency lending platform that filed for bankruptcy in 2022.

A motion to vacate is a legal request asking a court to cancel or set aside a previous judgment or order, such as a conviction or sentence.

'Pro se' means representing oneself in a legal proceeding without the assistance of a lawyer.

What Happens Next

01The judge overseeing the case is expected to rule on the prosecutors' filing.
02The SEC is expected to file a status report on its civil action against Mashinsky by the end of September.

How It Developed

Alex Mashinsky, former CEO of Celsius, filed a motion to vacate his 12-year sentence.
US prosecutors in the Southern District of New York responded, stating Mashinsky's arguments are 'without merit'.
Prosecutors argued against claims of ineffective assistance of counsel and Mashinsky blaming others.
Mashinsky was sentenced in May 2025 to 144 months in prison for commodities and securities fraud.
The judge has not yet responded to the prosecutors' filing.

Sources

T1
Federal prosecutors blast ex-Celsius CEO’s motion to vacate as ‘without merit’Despite already serving a 12-year sentence in federal prison, Alex Mashinsky continues to explore legal avenues to vacate his conviction related to activities at Celsius.Cointelegraph

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