The U.S. prosecutor demanded a 20-year prison sentence for former Celsius head Alex Mashinsky.

Federal Prosecutor Damian Williams (Damian Williams) stated that this is a show case that should serve as a stern warning for all participants in the crypto market and show: deceiving investors will lead to inevitable legal consequences.

The Prosecutor's Office claims that Alex Mashinsky deliberately distorted information about the company's financial performance, creating an illusion of profitability, which led to billions in losses for its investors after the bankruptcy of Celsius in 2022.

Alex Mashinsky admitted his guilt in December 2024 on two charges: commodity fraud and manipulating the price of the CEL token owned by Celsius. The court proceedings, originally scheduled for April, were postponed for a month at the request of Mashinsky's lawyers to give the defense more time to prepare.

The former revenue director of Celsius, Roni Cohen-Pavon (Roni Cohen-Pavon), who is involved in a fraud case, has also pleaded guilty and agreed to cooperate with the investigation. His sentencing is expected to be announced after the conclusion of the Mashinsky case, as the prosecution believes that the information provided could influence the final verdict of the court.

Earlier, the cryptocurrency lending platform Celsius Network appealed the court's decision that rejected its claim against the bankrupt cryptocurrency exchange FTX to pay $444 million in compensation.