Ex-Celsius CEO Files Motion to Vacate Sentence after Lawyers Withdraw

Alex Mashinsky, the former CEO of defunct cryptocurrency lending platform Celsius, has filed a motion in a New York court to vacate his 12-year sentence for fraud and market manipulation. 

In a Tuesday filing in the US District Court for the Southern District of New York, Mashinsky filed a motion to vacate his 144-month sentence, set by Judge John Koeltl in May 2025. The former Celsius CEO filed the paperwork without additional counsel, having announced on May 5 that he would be proceeding pro se in his case.

Although Mashinsky pleaded guilty to commodities fraud and securities fraud related to “manipulative and deceptive devices,” he filed a motion to vacate on the grounds that he had ineffective counsel and “fruit of [the] poisinous [sic] tree,” a legal doctrine referring to evidence tainted by authorities’ misconduct.

“I did not discharge my counsel at this time but they stopped communication with me so I had no choice but to file my reply directly with the court,” said Mashinsky.

Source: Courtlistener

In documents attached to his motion to vacate, Mashinsky said former FTX CEO Sam Bankman-Fried intended to “destroy Celsius,” blaming him for much of the market manipulation of the network’s CEL tokens on the crypto exchange. He asked that the judge deny any FTX trust request, and provided text messages with Celsius’ former chief revenue officer Roni Cohen-Pavon, claiming he had attempted a “hostile takeover” of the platform. 

Celsius filed for bankruptcy in 2022 amid a market downturn that saw the collapse of many crypto exchanges, including FTX. US authorities indicted Mashinsky and Cohen-Pavon in July 2023 on charges related to fraud and market manipulation, with both men later pleading guilty.

Related: Acting AG Todd Blanche confirms ‘code is not a crime’ in DOJ pivot

Cohen-Pavon was sentenced to time served after pleading guilty in September 2023, with prosecutors citing his “substantial assistance” to the government, including being prepared to testify against Mashinsky. His sentencing followed the court officially closing the criminal cases against the Celsius executives.

Alex Mashinsky at the Bitcoin 2021 conference in Miami. Source: Cointelegraph

Financial penalties against Celsius execs

Although the court may still consider Mashinsky’s motion to vacate, the former CEO was already ordered to pay $48 million as part of a forfeiture in his criminal case settled in 2025. He also agreed to pay $10 million as part of a settlement with the US Federal Trade Commission in a mostly suspended $4.72 billion monetary judgment.

Cohen-Pavon, sentenced to time served, agreed to pay more than $1 million and a $40,000 fine.

Magazine: HYPE chases $100 target, ETH could dump below $1800: Market Moves