Ex-Celsius CEO files motion to vacate sentence after lawyers withdraw
Alex Mashinsky, ex-CEO of failed crypto lender Celsius, filed a motion to vacate his 12-year fraud sentence, claiming ineffective counsel and tainted evidence. He blamed FTX's Sam Bankman-Fried for destroying Celsius and manipulating CEL tokens. Mashinsky faces $48 million in forfeiture and $10 million in FTC settlements, marking another blow to Indian crypto investors who lost funds in Celsius.
Key takeaways
- 1Ex-Celsius CEO Alex Mashinsky filed motion to vacate his 12-year fraud sentence, citing ineffective counsel and tainted evidence.
- 2Mashinsky ordered to pay $48 million forfeiture and $10 million FTC settlement for market manipulation of CEL tokens.
- 3Celsius collapsed in 2022; Mashinsky and former CRO Cohen-Pavon pleaded guilty to securities and commodities fraud charges.
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Why it matters
Indian retail investors who deposited funds in Celsius face permanent losses as executives face criminal penalties and massive financial settlements. The case highlights regulatory enforcement against crypto lending platforms that misled users, serving as a cautionary tale for depositing in unregulated crypto platforms.
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