Celsius Crypto Victims Demand Life Sentence for Alex Mashinsky, Saying He ...

[ABCbits]

Celsius Crypto Victims Demand Life Sentence for Alex Mashinsky, Saying He 'Devastated Lives'
Creditors of defunct crypto lender Celsius argued ahead of his upcoming sentencing that founder Alex Mashinsky "devastated lives."

Celsius Network founder Alex Mashinsky’s customers want him behind bars for life.

More than 200 victim impact statements, many reviewed by Decrypt, have been submitted to U.S. District Judge John G. Koeltl ahead of Mashinsky’s May 8 sentencing, with the overwhelming majority demanding the severest possible punishment for the mastermind behind the failed crypto lender.

“He devastated numerous lives, and there are those who have taken their own lives because of him,” wrote Brandon Lawrence, an investor who says he lost 1.5 Bitcoin (about $141,000 today). “He should face consequences akin to Bernie Madoff and be incarcerated for life.”... Read more here.


As reminder, Celcius was company that offered high yield/APR for deposited coin and filled for bankrupt back in 2022. It's not surprising they make such demand, but IMO it's unlikely to happen when SBF only received 25 years jail time. Your opinion is greatly appreciated.

[Lucius]

My opinion is that whatever the punishment, it will always be too little considering the damage (not just material) suffered by the company's clients. I know that there have been cases of suicides when it comes to cryptocurrencies, but I can't say if any of the cases are related to the companies in question, but i know that people were quite traumatized when they lost maybe everything they had.

Unfortunately, that's the dark side of the crypto market where anyone can be the CEO of a company and promise completely unrealistic things that end up disastrously - and that simply shouldn't happen. Part of the blame also goes to those who believed that there was logic in investing in such things, because they are such obvious ponzi schemes that I really don't understand why people fall for such cheap tricks.

If all these people just held coins (BTC) in their wallets, they would have earned far more than with this so-called "lending" that turned into a disaster.

[yhiaali3]

I also don't believe a judge could impose a life sentence for such a case. Financial fraud cases still carry a lighter penalty than murder, terrorism, or other crimes that warrant a life sentence.

In any case, I'm not an expert on American law, and I hope the judge imposes the maximum sentence on Alex Mashinsky, the founder of the Celsius Network, because he has caused significant harm to many people who have lost their money. I hope legislation is passed to increase the penalties in such cases to serve as a deterrent to these fraudsters who populate the crypto space.

[ABCbits]

I also don't believe a judge could impose a life sentence for such a case. Financial fraud cases still carry a lighter penalty than murder, terrorism, or other crimes that warrant a life sentence.

In any case, I'm not an expert on American law, and I hope the judge imposes the maximum sentence on Alex Mashinsky, the founder of the Celsius Network, because he has caused significant harm to many people who have lost their money. I hope legislation is passed to increase the penalties in such cases to serve as a deterrent to these fraudsters who populate the crypto space.

I agree. The victim mentioned Bernie Madoff as example who received 150 years jail time. But  he's called biggest ponzi schemer in US, while AFAIK Celcius isn't biggest case on cryptocurrency world.

[Zed0X]

Can the judge issue a sentence that's more than the maximum? As I understand from the article, he could be jailed for up to 30 years only or is that per charge? The victims should probably go to their lawmakers to propose changes to laws against these crimes.

[rdluffy]

My opinion is that whatever the punishment, it will always be too little considering the damage (not just material) suffered by the company's clients. I know that there have been cases of suicides when it comes to cryptocurrencies, but I can't say if any of the cases are related to the companies in question, but i know that people were quite traumatized when they lost maybe everything they had.

Unfortunately, that's the dark side of the crypto market where anyone can be the CEO of a company and promise completely unrealistic things that end up disastrously - and that simply shouldn't happen. Part of the blame also goes to those who believed that there was logic in investing in such things, because they are such obvious ponzi schemes that I really don't understand why people fall for such cheap tricks.

If all these people just held coins (BTC) in their wallets, they would have earned far more than with this so-called "lending" that turned into a disaster.

I used Celsius for a while, it had great deposit bonuses and I managed to earn a few good dollars there
I thought the project was good and that it would last for many years, without any problems, after all it wasn't as big as usually scams promises to people, it was a pretty good return in dollars, but nothing extraordinary

But I managed to get my balance out of there before there were any problems. At the first sign that something was wrong, I withdrew it
I didn't have the same luck at FTX, and my money was stuck there until a few months ago.

[Z-tight]

The damage is always bigger than the sentencing, that is why it is a better decision to ensure you don't fall victim to something like this, by simply storing your funds in self custody. Most of the creditors may wish this severe punishment, but what are the chances of it happening, he should get a good number of years in prison, but he won't get a life sentence.

[LogitechMouse]

As reminder, Celcius was company that offered high yield/APR for deposited coin and filled for bankrupt back in 2022. It's not surprising they make such demand, but IMO it's unlikely to happen when SBF only received 25 years jail time. Your opinion is greatly appreciated.

I'm not familiar with how much money does the customers lost in Celsius, but looking at how many years SBF will be in jail, we can speculate that Alex Mashinsky will suffer the same fate as well or if not, at least near 25 years as well.

What happened with Celsius really is a devastating thing especially for those who deposited their life savings on that platform. Yes, we always say that we should not put our life savings into platforms like Celsius, but we know that there will still be people that will be doing because they want to earn their money instead of just being stored, but not appreciating at all.

As for me, I guess I'm fortunate that I didn't put any money on Celsius. Just for context, I also thought of putting some on it as well because I've seen this platform already back then.

[bitterguy28]

More than 200 victim impact statements, many reviewed by Decrypt, have been submitted to U.S. District Judge John G. Koeltl ahead of Mashinsky’s May 8 sentencing, with the overwhelming majority demanding the severest possible punishment for the mastermind behind the failed crypto lender.

they are understandably devastated but they are also obviously emotional but in reality this will not happen in real life that he gets the severest punishment possible unless he has taken someone else's life or at least attempted to he will not get that most severe punishment everyone is hoping he will get

[TomPluz]

There is already the need for a wide-ranging law on cryptocurrency regulations that includes punishment for those who use this industry as a way to enrich themselves and to victimize other people by offering scam programs. The law should cater more to giving justice to the victims and not giving leniency and understanding to the perpetrators. Unless we are sending a strong message to scammers, fraudsters and hackers, these evil people will continue to do their business of robbing people digitally and will continue to use cryptocurrency as a tool for their deception. The biggest lesson here is to be careful not be attracted to greedy programs that will eventually collapse and thereby we lose the money we depend on. In addition, the DOJ is actually just seeking 20 years for Alex Mashinsky which is to me lighter but maybe this can be the maximum time allowed by the current law.

[hugeblack]

If there was a way for them to get some compensation, it would be better than demanding a longer prison sentence for Alex Mashinsky, who will most likely be released before the end of his sentence, and many of these victims will forget what happened within 10 years (although the effects may last for the rest of their lives).

[ABCbits]

In addition, the DOJ is actually just seeking 20 years for Alex Mashinsky which is to me lighter but maybe this can be the maximum time allowed by the current law.

It's not surprising when SBF himself only got 25 years, even though FTX case sparked bigger discussion than Celcius. But as that news stated, 20 years feels longer for Alex who's already in his 60s. By time he got out of prison (even with some prison time reduction), it's unlikely he's still fit enough to conduct another major crime.

[hugeblack]

It's not surprising when SBF himself only got 25 years, even though FTX case sparked bigger discussion than Celcius. But as that news stated, 20 years feels longer for Alex who's already in his 60s.

In some countries, those aged 75-80 are exempt from convictions and are instead subject to house arrest under legal supervision. Therefore, in such cases, it is preferable to obtain more compensation.