Former Celsius CEO Alex Mashinsky plans to report to federal prison on Friday after pleading guilty and accepting the sentencing hearing judgment.
According to documents submitted on May 12, Mashinsky is expected to surrender to authorities at 2:00 PM Eastern Time on Friday, just days after his sentencing hearing in the U.S. District Court for the Southern District of New York.
The court recommended that Mashinsky serve his sentence at the Otisville federal prison in New York, which is a minimum-security facility located about 75 miles (120 kilometers) from New York City.
Before the crypto market downturn possibly triggered by the collapse of the Terra ecosystem in 2022, Celsius was one of the largest crypto companies in the industry, alongside FTX.
The company filed for bankruptcy protection in the U.S. in July 2022, and a few months later, Mashinsky resigned as CEO.
Celsius concluded its bankruptcy proceedings in January 2024 and subsequently began distributing approximately $3 billion in assets to creditors.
According to court documents submitted in June, Mashinsky waived all claims against the company during the bankruptcy proceedings.
He was initially charged with seven felonies in July 2023 and was set to go to trial, but the situation changed after his lawyer failed to successfully move to dismiss charges related to commodity fraud and manipulation of the Celsius (CEL) token price.
The company's former Chief Revenue Officer Roni Cohen-Pavon pleaded guilty to four felony charges and is scheduled for sentencing on September 17.
Cointelegraph reached out to the legal teams of Mashinsky and Cohen-Pavon, but had not received a response by the time of publication.
Mashinsky is one of the most significant figures in the cryptocurrency and blockchain industry facing criminal charges and imprisonment, alongside others such as former FTX CEO Sam "SBF" Bankman-Fried, former Binance CEO Changpeng Zhao ("CZ"), and Terraform Labs co-founder Do Kwon.
Bankman-Fried has been convicted and is currently serving a 25-year sentence in a California prison, Zhao pleaded guilty and served four months, while Do Kwon is awaiting sentencing after pleading guilty in August.
Related: Ethereum (ETH) Layer 2 network Kinto announces gradual shutdown after months of being hacked, token plummets 81%
Original article: “Former Celsius CEO to begin 12-year prison sentence this week”
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