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Alex Mashinsky, the former CEO and founder of Celsius Network, has filed a motion to vacate his 12-year prison sentence. He’s doing it without a lawyer, citing ineffective counsel and claiming that Sam Bankman-Fried played a role in sabotaging his company.
The pro se filing, submitted to the US District Court for the Southern District of New York, arrives just weeks after Judge John G. Koeltl sentenced Mashinsky on May 8, 2025. It’s a bold move from a man who pleaded guilty to commodities and securities fraud on December 3, 2024, and whose legal team has since walked away.
The legal argument, translated
Mashinsky’s motion rests on two main pillars. The first is a claim of ineffective assistance of counsel, essentially arguing that his attorney failed to communicate adequately with him during the proceedings.
The second pillar invokes the “fruit of the poisonous tree” doctrine. Mashinsky is arguing that certain evidence used against him was obtained improperly, and therefore everything derived from that evidence should be thrown out.
The Bankman-Fried angle adds another layer. Mashinsky accuses the FTX founder of actively working to undermine Celsius, and he also points fingers at former Celsius executive Roni Cohen-Pavon. The argument appears to be that external sabotage, not just internal mismanagement, contributed to the platform’s collapse.
What Mashinsky was convicted of
The charges stemmed from misrepresentations about Celsius’s financial health and the manipulation of the CEL token, the platform’s native cryptocurrency.
Celsius filed for Chapter 11 bankruptcy in July 2022 amid a liquidity crisis that left users unable to withdraw their funds. Mashinsky was arrested in July 2023 as federal investigators dug into the company’s practices.
His sentence included more than just prison time. Judge Koeltl also imposed three years of supervised release, a $50,000 fine, and the forfeiture of approximately $48 million.
On the civil side, Celsius faced a $4.7 billion settlement with regulators including the CFTC, SEC, and FTC.
The SBF connection
Mashinsky’s invocation of Sam Bankman-Fried is notable for its audacity, if nothing else. Bankman-Fried is currently serving a 25-year sentence for fraud related to FTX’s collapse, handed down in 2024.
It’s also worth noting that Mashinsky is representing himself. His previous legal team withdrew, leaving him to navigate federal appellate procedure solo.
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