Crypto users weigh as Alex Mashinsky, the former CEO of the Celsius Network, is preparing to stand in front of a judge on May 8 to deal with the fostering for the fraud of the goods and a deceptive method to manipulate the platform’s token price.
During a May 2 file in the US district court for the Southern District of New York (SDNY), prosecutors released several impact statements from individuals affected by the collapse of Celsius filed after the initial deadline. Although at least one suggested mentality for the former CEO, many told the court about the financial and personal losses caused by the Crypto firm who had filed for losses, and indicated that Mashinsky should be responsible for the company’s misinterpretation of the company.
“Many of the people who participated in this fraud, benefited from this fraud, and potentially that -bestra this fraud would be lost to zero legal consequences,” said Daniel Frishberg of Hillsborough County, Florida, in April 24’s statement. “Please do Some people have asked him to support him).
Prosecutors have asked to serve mashinsky Up to 20 years in prison for his role in Celsius’ fraud, while the former CEO’s legal team asked for one year and a day. The judge will consider the victims and statements of the victim on May 8.
Call for gentle and harsh prison time
Not all who sent a letter to prosecutors seemed to favor Mashinsky sent for decades, such as former FTX CEO Sam “SBF” bankman-fried. SBF stood before another federal judge in the same district in March 2024 and gave a 25-year sentencethat he is currently serving in a prison in California.
“As Celsius (SIC) collapse has caused significant losses, especially for Bitcoin holders, shareholders, and lenders, despite his mistakes, Mr. Mashinsky is, at times, the more conservative voice in an industry overflowing with an unnoticed greed,” Artur Abreu said.
“The twenty-year sentence suggested by the US DOJ is fair in my opinion, because Mashinsky has caused pain and suffering for many crypto investors worldwide-even resulting in suicide for some of those involved,” said web3 deep dive podcast host and former cointelegraph reporter Rachel Wolfson costing $ 5,000 in time. “The harsh penalties for bad actors in the crypto industry are required to ensure that the space is legitimate over time.”
Mashinsky’s judgment is one of the first of significant crypto cases in the district since Jay Clayton became a temporary US attorney For Sdny. A Trump appointment, Clayton was formerly head of the US Securities and Exchange Commission and a crypto proponent on many issues.
https://www.youtube.com/watch?v=vkc5qcrvdc0
Critics have suggested that Clayton will take a softer crypto implementation approach, which has given his relationship to Wall Street companies and the industry. However, he too released a statement In April about a $ 12-million case of crypto, suggesting that he supported responsibility for fraudulent actions. His response to Mashinsky’s judgment and other future cases could be a bell for the US attorney’s approach to crypto.
Related: US prosecutors have filed more than 200 victims’ statements in Celsius Ex-CEO’s case
