Federal prosecutors have pushed back hard against a motion filed by former Celsius CEO Alex Mashinsky seeking to vacate his conviction, dismissing his arguments as "without merit" as he continues to fight from behind bars.
Prosecutors Reject the Motion
US prosecutors have urged a federal court to deny Mashinsky's bid to overturn his conviction, arguing that his legal challenge lacks any substantive basis. The response signals that authorities intend to defend the outcome of a case that became one of the most high-profile crypto fraud prosecutions in recent years.
Mashinsky is currently serving a 12-year sentence in federal prison tied to his conduct at Celsius, the crypto lending platform that collapsed and left customers with billions of dollars in frozen and lost funds.
Even from prison, the disgraced Celsius founder is refusing to accept the finality of his conviction.
A Continued Legal Fight
Despite the sentence already being handed down, Mashinsky has continued to pursue legal avenues aimed at reversing the verdict against him. His motion to vacate represents the latest effort to unwind the conviction, though prosecutors have framed the attempt as unlikely to succeed.
The case stems from the dramatic failure of Celsius, once a major player in the crypto lending sector. When the platform froze withdrawals and later filed for bankruptcy, it triggered widespread losses for retail users who had entrusted their digital assets to the company.
Key elements of the dispute include:
- Mashinsky's 12-year prison sentence connected to his activities at Celsius
- His ongoing effort to have the conviction vacated
- The government's insistence that the motion should be denied outright
The court will now weigh the competing arguments, with prosecutors making clear they see no legal grounds for reconsidering the case. For now, Mashinsky remains incarcerated as the proceedings continue.