Alex Mashinsky, former CEO of the defunct cryptocurrency lending platform Celsius, has sought to overturn his 12-year prison sentence for fraud and market manipulation, but prosecutors in the Southern District of New York (SDNY) have rejected his motion, calling his legal claims “without merit.” The SDNY filed a response on Friday opposing Mashinsky’s application, which he submitted pro se in May, and argued that his petition should be denied without further fact-finding.
Mashinsky’s motion alleged misconduct by former colleague Roni Cohen-Pavon and cryptocurrency exchange FTX, but prosecutors dismissed these claims as unsubstantiated. They highlighted that Mashinsky had not provided sworn declarations to support his allegations and rehashed evidence already considered during his sentencing in May 2025. The judge had not yet ruled on the SDNY’s filing as of Tuesday.
Mashinsky was sentenced to 144 months in prison for commodities and securities fraud, alongside a $48 million forfeiture order and a separate $10 million settlement with the US Federal Trade Commission (FTC). His former colleague, Roni Cohen-Pavon, received a sentence of time served and provided “substantial assistance” to prosecutors.
The US Securities and Exchange Commission (SEC) has reported ongoing settlement discussions with Mashinsky as of July 30, though the outcome of its civil action remains pending. Meanwhile, the US Commodity Futures Trading Commission (CFTC) has permanently banned Mashinsky from trading. The judge’s response to the SDNY’s filing and the resolution of the SEC’s case remain unspecified.
Written by Steven Cook
Regulation Desk
