Former crypto lender CEO cites ineffective legal counsel and conflicts of interest in motion to vacate guilty plea and prison term.
Alex Mashinsky, founder of collapsed crypto lending platform Celsius, filed a motion to vacate his 12-year prison sentence for commodities and securities fraud. The handwritten filing argues his legal team provided ineffective counsel due to undisclosed financial conflicts involving FTX founder Sam Bankman-Fried’s firm.
Mashinsky pleaded guilty to fraud charges in 2023 after Celsius’s bankruptcy left customers unable to access funds. His motion claims the law firm representing him faced financial duress, creating an irreconcilable conflict that influenced key defense strategies.
The motion does not specify a timeline for court review but requests habeas corpus relief, citing violations of constitutional rights. No immediate market reaction was reported following the filing.