Prosecutors seek 20-year prison term for founder of failed crypto platform Celsius Network
NEW YORK (AP) — The founder and former CEO of the failed cryptocurrency lending platform Celsius Network should face 20 years behind bars for lying and self-dealing that cost customers billions of dollars in losses, prosecutors told a judge Tuesday.
Alexander Mashinsky, 59, told thousands of customers that their money was safe and secure, leading to investors pouring over $20 billion into Celsius by 2021, they wrote in a submission ahead of a scheduled May 8 sentencing in Manhattan federal court.
“They were not,” prosecutors said, noting that Celsius declared bankruptcy in 2022 and acknowledged that it could not return to customers what they had invested.
Prosecutors said Mashinsky fabricated Celsius’ profitability and put…
