Celsius victims report over $200 million in losses in fraud case

US federal prosecutors have submitted over 200 victim impact statements in the case against former Celsius Network (CRYPTO:CEL) CEO Alex Mashinsky, ahead of his sentencing scheduled for May 8.

According to interim US Attorney Jay Clayton, the statements span 418 pages and detail the financial and emotional harm suffered by Celsius users after the platform collapsed.

Many victims said they entrusted their life savings to Celsius, relying on Mashinsky’s public claims that the platform was secure.

“I believed in Celsius and put in everything I had, only to lose it all,” read one statement, a sentiment repeated throughout the filings.

Others expressed frustration with the bankruptcy process, noting that the funds returned were far less than their original deposits.

Before its collapse, Celsius allowed users to deposit crypto assets to earn yield and offered loans using crypto as collateral.

The platform froze withdrawals in mid-2022 during a broader market downturn and filed for bankruptcy in July of that year.

Mashinsky later pleaded guilty to one count each of commodities and securities fraud, charges carrying a combined potential sentence of up to 30 years.

While many victim statements urged the court to impose the maximum sentence, at least two letters requested leniency.

Without providing any proof, one individual, only known as Mike, asserted that Mashinsky was the victim of external manipulation and contended that more punishment would be "unreasonably excessive."

Another, Artur Abreu, noted that Mashinsky had expressed remorse and cited macroeconomic pressures as key reasons behind Celsius’s failure.

Mashinsky’s legal team has asked for a sentence of no more than 366 days, asserting he acted with “genuinely good intentions” and had no prior criminal record.

The government is expected to file its sentencing recommendation on April 24.