United States v. Mashinsky (Celsius) (2024)

Analysis ID: f2i7j69-lgh8-hg7g-4h5503j070l4

Predicted Outcome

12 Years Prison

Confidence Score: 96%

Analysis Type

Criminal Case

Jurisdiction:Federal

Citations:6

Probability Distribution

12 Year Sentence Upheld85%

Sentence Reduced on Appeal12%

Conviction Overturned3%

Defendant sentenced to 12 years imprisonment following conviction.

Evidence proved defendant defrauded 1.7 million customers of $25 billion.

False representations made about safety and liquidity of customer deposits.

Defendant withdrew personal funds while restricting customer withdrawals.

Platform marketed as alternative to traditional banking while engaging in risky investments.

Misuse of customer deposits for speculative trading and overleveraged positions.

Coordinated cover-up of financial insolvency from customers and regulators.

Statute

Multiple counts of wire fraud through false representations to customers.

Statute

Fraudulent practices in connection with purchase or sale of securities.

Statute

Making false statements to federal regulators.

Case Law

Recent precedent for sentencing in cryptocurrency fraud cases.

•Defense argued market conditions and external factors caused platform failure.
•Defense claimed defendant believed platform was solvent and acting in good faith.
•Defense sought leniency based on lack of prior criminal history.
•Defense argued industry-wide practices made conduct less culpable.

1.Successful appeal based on procedural errors or evidentiary issues.
2.Sentence reduction for substantial assistance in ongoing investigations.
3.New evidence emerges exonerating defendant or showing different level of culpability.
4.Appellate court finds sentencing guidelines were misapplied.