Alex Mashinsky, the founder and former CEO of the collapsed crypto lender Celsius Network, is fighting to overturn his 12-year prison sentence. In a handwritten motion filed in New York federal court, he claims he was let down by his own legal team.
Mashinsky argues his defense was compromised by a conflict of interest. He claims his law firm, Mukasey & Young LLP, was under financial distress. This distress, Mashinsky asserts, was worsened because the firm also represented FTX founder Sam Bankman-Fried. Mashinsky alleges SBF's actions-namely the market manipulation of CEL and stETH-directly harmed Celsius.
The former CEO pleaded guilty to commodities and securities fraud last year. At his sentencing, he told the court, "I know what I did was wrong." Despite appeals from some victims for a life sentence, he was given 12 years. Last month, Mashinsky was also banned from the crypto industry as part of a $10 million settlement with the FTC.