In a filing filed in court on Feb. 5, attorneys for Alex Mashinsky, former CEO of Celsius Network, asked that his sentence be delayed by one calendar month. They cited the complexities and volume of documents to review.
Mashinsky’s defense team wants to move the date of his sentencing to May 8, as he has pleaded guilty to fraud.
The attorneys for the defendant argue that he needs more time to review the presentence investigation (PSR), the victim impact statements, and the legal obligations of the Celsius bankruptcy case.
The filing states:
“The defense respectfully requests a one-month adjournment of Mr. Mashinsky’s sentencing to ensure that it has sufficient time to prepare a sentencing submission that accurately presents Mr. Mashinsky’s views on his offense conduct.”
One-week extension
Mashinsky also has to respond to a 180 page complaint filed in a proceeding against him relating to the Celsius bankruptcy. His attorneys say that this is hampering his preparation for his sentencing.
Defense said the government lifted a stay in this litigation, despite its request that it remain until sentencing.
The prosecution has agreed to a one-week extension for objections to the PSR and its final disclosure but opposes delaying the sentencing date on the basis that Mashinsky’s request is premature and that victims of the case deserve finality.
United States V. Mashinsky is a case in which it’s alleged that former Celsius CEO, Mashinsky misled and defrauded investors before the firm collapsed. Mashinsky may face an extended prison sentence.
John G. Koeltl, the judge who will rule on this request is yet to make a decision.
Celsius legal saga
Mashinsky arrested on July 20, 2023, charged with multiple securities frauds, commodities frauds, and wire crimes in relation to Celsius Network. Mashinsky pleaded guilty in December 2024 to two charges.
In 2017, Celsius was founded. It positioned itself as an interest-bearing crypto lending platform, allowing users to earn returns of up to 17% on digital assets deposited. The company at its height claimed that it had billions of assets and millions users.
But the company faced increasing scrutiny when the collapse of the 2022 cryptocurrency market exposed its liquidity concerns. In June 2022, Celsius stopped customer withdrawals and then filed for Chapter 11 bankruptcy in the month following. This left thousands of customers without access to their money.
Prosecutors alleged that Mashinsky falsely portrayed Celsius as a safe and profitable alternative to traditional banks while concealing the company’s financial struggles. They accused him of misusing customer funds to prop up the company’s failing balance sheet and cashing out millions for himself before the collapse.
He was also charged with civil offenses by the US Securities and Exchange Commission and Commodity Futures Trading Commission.
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