Crypto users are weighing in as Alex Mashinsky, the former CEO of Celsius Network, prepares to stand before a judge on May 8 to face sentencing for commodities fraud and a fraudulent scheme to manipulate the price of the platform’s token.

In a May 2 filing in the US District Court for the Southern District of New York (SDNY), prosecutors released several impact statements from individuals affected by the collapse of Celsius filed after the initial deadline. Though at least one suggested clemency for the former CEO, many told the court about the financial and personal losses caused by the crypto firm filing for bankruptcy, and hinted that Mashinsky should be held accountable for misrepresenting the company.

“Many of the people who participated in this fraud, benefited from this fraud, and potentially orchestrated this fraud will get away with zero legal consequences,” said Daniel Frishberg of Hillsborough County, Florida, in an April 24 statement. “Please do not allow Mr. Mashinsky to be one of those people (such as with probation/house arrest, as some people supporting him have requested). Please throw the book at him.”

A victim impact statement from a Celsius user filed with the SDNY on May 2. Source: PACER

Prosecutors have requested that Mashinsky serve up to 20 years in prison for his role in Celsius’ fraud, while the former CEO’s legal team asked for a year and one day. The judge will consider guidelines and victim statements at sentencing on May 8.

Calls for leniency and harsh prison time

Not everyone who sent in a letter to the prosecutors seemed to be in favor of Mashinsky being sent away for decades, as was former FTX CEO Sam “SBF” Bankman-Fried. SBF stood before a different federal judge in the same district in March 2024 and was handed a 25-year sentence, which he is currently serving in a California prison. 

“While Celsius [sic] collapse caused significant losses, particularly for Bitcoin holders, shareholders, and borrowers, despite his mistakes, Mr. Mashinsky was, at times, the more conservative voice in an industry overflowing with unchecked greed,” said Artur Abreu in a victim impact statement.

“The twenty-year sentence suggested by the US DOJ is fair in my opinion, as Mashinsky caused pain and suffering for many crypto investors across the globe – even resulting in suicide for some of those involved,” said Web3 Deep Dive podcast host and former Cointelegraph reporter Rachel Wolfson, who lost access to Bitcoin worth about $5,000 at the time. “Harsh punishment for bad actors in the crypto industry has become necessary to ensure that the space legitimizes over time.”

Mashinsky’s sentencing will be one of the first in significant crypto cases in the district since Jay Clayton became interim US Attorney for SDNY. A Trump appointee, Clayton was previously the chair of the US Securities and Exchange Commission and a crypto proponent on many issues. 

Critics have suggested that Clayton would take a softer approach to crypto enforcement, given his ties to Wall Street firms and the industry. However, he also released a statement in April regarding a $12-million crypto case, suggesting that he supported accountability for fraudulent actions. His response to Mashinsky’s sentencing and other future cases could be a bellwether for the US Attorney’s approach to crypto.

Related: US prosecutors file over 200 victim statements in Celsius ex-CEO’s case

Asset manager VanEck has asked US regulators for permission to list an exchange-traded fund (ETF) holding BNB, the native token of Binance’s BNB Chain, regulatory filings show. 

The ETF is designed to accumulate spot BNB (BNB) tokens and “may, from time to time, stake a portion of the [fund’s] assets through one or more trusted staking providers,” according to the ETF’s S-1 prospectus. The filing marks the first time an asset manager has filed for a BNB ETF in the United States.

The BNB token has a market capitalization of roughly $84 billion, according to data from CoinMarketCap. As of May 5, BNB stakers earn a yield of approximately 2.5%, according to data from Stakingrewards.com. 

Binance’s BNB Chain is among the most popular smart contract networks, with a total value locked (TVL) of nearly $6 billion, according to data from DefiLlama. 

BNB Chain is among the most popular blockchain networks. Source: DeFILlama

Related: Binance co-founder CZ proposes Bitcoin, BNB for Kyrgyzstan reserves

Bitcoin’s “spillover” effect?

The filing comes days after Binance co-founder Changpeng “CZ” Zhao reportedly said he expects the popularity of Bitcoin (BTC) ETFs to eventually “spill over” into altcoins.

“This cycle so far has been the ETFs. And it’s almost all Bitcoin. Ether hasn’t had as much success but Bitcoin success will spill over to the others eventually,” CZ reportedly said during the Token2049 conference in Dubai. 

Spot Bitcoin ETFs attracted net inflows of more than $40 billion since launching in January of 2024, according to data from Farside Investors.

Cumulative inflows into spot BTC ETFs. Source: Farside Investors

VanEck’s filing is the newest in a flurry of filings seeking to list ETFs holding altcoins. 

The US Securities and Exchange Commission (SEC) has acknowledged dozens of cryptocurrency ETF proposals since US President Donald Trump took office on Jan. 20. 

They include plans for ETFs holding native layer-1 tokens such as Solana (SOL) as well as memecoins such as Dogecoin (DOGE).

VanEck has filed to list other cryptocurrency ETFs over the past few months, including funds holding Solana and Avalanche (AVAX).

Magazine: ZK-proofs are bringing smart contracts to Bitcoin — BitcoinOS and Starknet

Key Takeaways:

88% of Bitcoin’s supply is in profit below $95,000, indicating a reset in investor expectations.

The current price range of $75,000–$95,000 may represent a structural bottom, aligning with market conditions from Q3 2024.

The Market Value to Realized Value (MVRV) Ratio at 1.74 acts as a historical support zone, signaling cooling unrealized gains and potential for future growth.

Bitcoin’s (BTC) market dynamics are shifting, as Glassnode data reveals that 88% of the supply is currently in profit, with losses concentrated among buyers in the $95,000-$100,000 range. This high profitability, rebounding from a long-term mean of 75%, indicates a reset in investor expectations. 

Bitcoin percent supply in profit. Source: X.com

Bitcoin’s price staged a recovery from its long-term cumulative mean percentage in profit, marking a notable shift. Previously, in August 2024, Bitcoin retested the 75% mean at around $60,000. This suggests that the price range of $75,000–$95,000 may represent the bottom, aligning with the structural market conditions observed in Q3 2024.

Confirming the decrease in holder sales through exchanges, the total exchange flow (inflow + outflow) to network activity ratio provides further insight. Bitcoin researcher Axel Adler Jr. explained that the chart shows a 1.5x decrease in ratio following Bitcoin’s all-time high, directly confirming that the current growth is more organic.

Bitcoin exchange flows to the network activity ratio. Source: Axel Adler Jr.

The analyst explained that, unlike previous price peaks, where a high ratio (marked by orange bars) signaled heavy selling, current levels show no such urgency, reinforcing a more stable market environment.

High profitability and reduced exchange inflows indicate diminished selling pressure from holders, enabling an improved holder’s mindset between $75,000 and $95,000. This suggests that investors viewed BTC as undervalued and not as an exit opportunity, which aligned with the broader bullish sentiment.

Related: Watch these Bitcoin price levels as BTC meets ‘decision point’

BTC data hint at cooling unrealized gains under $95K

Glassnode noted that the Market Value to Realized Value (MVRV) Ratio, a key market sentiment indicator, has returned to its long-term mean of 1.74. Historically, this level has been a support zone (since January 2024) during consolidation phases, signaling a cooling of unrealized gains and a potential base for future growth.

Bitcoin MVRV ratio bands. Source: X.com

Similarly, the Network Value to Transactions (NVT) ratio is neutral at 0.5 with Bitcoin priced at $94,400, in contrast to its overbought signal when BTC was previously at this level in February 2025.

This shift in market dynamics and evolving holder behavior indicates that the current cohort of profitable investors may be less inclined to sell at these levels. This could further strengthen the bullish case of the present market structure.

Bitcoin NVT golden cross. Source: CryptoQuant

Related: BTC dominance due ‘collapse’ at 71%: 5 things to know in Bitcoin this week

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.