Alex Mashinsky, the former CEO of bankrupt crypto lender Celsius Network, has filed a motion to vacate his 12-year prison sentence, court records show. The filing comes after his legal team withdrew from the case, leaving Mashinsky to proceed without counsel. The motion includes allegations involving FTX and what Mashinsky describes as a 'hostile takeover' by a former Celsius executive — an individual who was himself sentenced to time served.
What the motion alleges
In the filing, Mashinsky claims that the government's case against him was tainted by evidence related to FTX's collapse and the actions of a former Celsius insider. He asserts that a former Celsius executive orchestrated a 'hostile takeover' of the company, and that this executive's cooperation with prosecutors was improperly used to secure a conviction. The former executive received a sentence of time served, a detail Mashinsky's motion highlights as proof of a skewed outcome.
Legal representation withdrawn
Before Mashinsky filed the motion, his attorneys — who had represented him through his trial and sentencing — withdrew from the case. The court has not yet appointed new counsel, and it is unclear whether Mashinsky will continue to represent himself or seek new lawyers. Legal observers note that pro se filings are common in post-conviction motions but rarely succeed without experienced counsel.
Mashinsky was sentenced in 2024 after a jury found him guilty of fraud and market manipulation related to Celsius's collapse in 2022. The 12-year term was among the harshest handed down to a crypto executive. Celsius filed for bankruptcy in July 2022, leaving hundreds of thousands of customers unable to access their funds. Mashinsky has maintained his innocence and has vowed to appeal.
Next steps in court
The motion now awaits a response from the government and a ruling from the judge who oversaw Mashinsky's trial. No hearing date has been set. If the motion is denied, Mashinsky would remain in federal custody while pursuing further appeals. The case continues to draw attention from the crypto industry and legal analysts watching how courts handle post-conviction challenges tied to the FTX scandal.
