Bitcoin mining firm MARA Holdings (MARA) nearly tripled its Bitcoin holdings over 12 months, according to its newly released Q1 results.

However, its Bitcoin production fell, and total earnings slightly missed Wall Street estimates in Q1.

MARA, formerly Marathon Digital, saw its Bitcoin (BTC) holdings increase to 47,531 BTC, up 175% from the 17,320 BTC the firm was holding at the end of Q1 2024.

MARA holdings inch closer to $5B after Bitcoin pump

MARA holds the second-largest amount of Bitcoin among all publicly traded companies, according to CoinGecko data. Strategy (MSTR) holds the number one spot with 555,450 Bitcoin.

The holdings represent a total value of approximately $4.9 billion, based on Bitcoin’s current price of $102,660 at the time of publication, according to CoinMarketCap data. Over the past 24 hours, Bitcoin’s price spiked 4.86%.

Bitcoin is trading at $102,660 at the time of publication. Source: CoinMarketCap

However, the amount of Bitcoin that MARA produced over the quarter fell 19% compared to the same quarter in 2024 to 2,286 Bitcoin. 

MARA attributed this to the last Bitcoin halving event, which reduced mining rewards to 3.125 BTC per block and tightened overall supply.

MARA fell short of analyst revenue expectations by 0.35%, according to Zacks Research. The analysts pointed out that MARA has only surpassed consensus revenue estimates once in the past four quarters.

MARA is trading at $14.20 at the time of publication. Source: Google Finance

Despite this, MARA’s stock price jumped 7.2% during trading on May 8 but has since pulled back nearly 2% in after-hours trading, according to data from Google Finance.

Bitcoin mining firms share same frustrations

Bitcoin miner Riot Platforms echoed similar difficulties in their recent Q1 financial report. 

Riot said that the average cost to mine Bitcoin over the quarter was $43,808, almost 90% more than the $23,034 it cost to mine Bitcoin in the same period last year. However, Riot beat its $159.8 million revenue consensus estimate by 1%.

Related: Bitcoin miner Hive taps Paraguay for low-cost energy partnership

Several other Bitcoin mining firms also fell short of Wall Street’s revenue expectations.

Bitcoin miner CleanSpark missed consensus estimates by 0.58%, reporting quarterly revenue of $181.71 million.

Bitcoin miner Core Scientific also fell short of analyst expectations with total Q1 revenue reaching $79.5 million, missing Zacks analysts’ estimates by 8.11% and falling from its $179.3 million revenue for Q1 2024. 

Meanwhile, Bitcoin miner Hut8 reported the widest miss among Bitcoin mining firms, falling 35% short of Wall Street expectations.

Zacks Research had projected Hut8 to post first-quarter revenue of $35 million, but Hut8 came in significantly lower at just $21 million.

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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.

Ripple has made a slew of acquisitions to control key transaction rails and route them through XRP and its stablecoin, Ripple USD (RLUSD), drawing comparisons to Japanese investment firm SoftBank. 

The $1.25-billion acquisition of Hidden Road on April 8 allows Ripple to use RLUSD as collateral in the firm’s prime brokerage products. Hidden Road will also migrate its post-trade operations to the XRP Ledger, the blockchain that underpins cryptocurrency XRP (XRP) and several of Ripple’s institutional services.

Omni Network co-founder Austin King knows Ripple’s strategy firsthand. He sold his startup, Strata Labs, to Ripple in 2019 and describes the approach as a “SoftBank-type” acquisition strategy.

Instead of in-house development like Google or Meta (formerly Facebook), SoftBank built its empire through aggressive investments, joint ventures and acquisitions. Ripple seems to be following a similar playbook, but not everyone’s convinced the comparison holds.

XRP reaches over 300 institutional clients through Ripple’s Hidden Road acquisition. Source: Brad GarlinghouseThe SoftBank model in Ripple

Two deals put SoftBank on the global map: an early investor in Yahoo and the legendary $20-million bet on Alibaba, which exploded to $60 billion when Alibaba went public in 2014. SoftBank recycled its returns into fresh capital, exits and a sprawling ecosystem. That included the $20-billion move into US telecom via Sprint and semiconductors through its $31-billion acquisition of UK-based ARM.

“This wide breadth of coverage allowed SoftBank to create synergies across their entire portfolio of companies,” King told Cointelegraph. “Ripple is performing a similar strategy focused on financial services, but instead of venture bets on Yahoo and Alibaba enabling this, it is XRP.”

Related: Does XRP, SOL or ADA belong in a US crypto reserve?

Considering Ripple’s recent acquisitions, both firms buy infrastructure instead of building it from scratch and treat their portfolios as ecosystems rather than one-off investments.

Both companies rely on capital as leverage. SoftBank used its $100-billion Vision Fund to outbid competitors. Ripple also has a war chest of XRP and cash. As of March 31, Ripple had 4.56 billion XRP (around $11 billion at current prices) and another 37.13 billion XRP ($89.8 billion) in escrow.

Acquisitions expand the footprint for XRP and RLUSD in traditional finance, turning them into embedded components of custody, brokerage and payment flows. This creates what King describes as a token-fueled flywheel. Ripple uses its assets to acquire infrastructure, which in turn drives usage back into those assets.

XRP ranks third among non-stablecoin cryptocurrencies by market capitalization. Source: CoinGecko

“With a full-stack infrastructure, Ripple can embed XRP as the native bridge asset between networks, custodians and tokenized assets. Meanwhile, RLUSD can provide a regulated, USD-pegged unit of account that institutions want,” said Sid Powell, co-founder and CEO of institutional blockchain lender Maple.

King’s analogy has its skeptics.

“SoftBank operates more as a conglomerate or holding company, taking broader investment positions across industries. On the other hand, Ripple is taking a more focused and product-related approach with its recent acquisitions tied to payment missions and core blockchain,” Powell said.

Casper Johansen, co-founder of Spartan Group, told Cointelegraph the comparison seems “a bit stretched,” noting that SoftBank’s success came from acquiring and turning around operating businesses, joint ventures, minority stakes and eventually exiting some for large gains.

Ripple joins the crypto M&A arms race

Instead of spanning telecom, media and chips, Ripple is assembling a financial infrastructure stack. It acquired custody firms Metaco in 2023 and Standard Custody in 2024. The latest addition, prime broker Hidden Road, brings 300 institutional clients clearing $3 trillion annually.

“Where Metaco lays the foundation — the vault for storing assets — Hidden Road allows Ripple to leverage its massive balance sheet to turbocharge Hidden Road’s business, in which access to capital — a lot of capital — is critical in order to keep growing and competing,” Johansen said.

The move echoes a broader M&A wave among US crypto firms. Kraken recently acquired NinjaTrader for $1.5 billion, while Coinbase has acquired Deribit for $2.9 billion.

These acquisitions follow a shift in the US regulatory climate that’s clearing the runway for crypto firms to scale. For years, companies like Ripple were stuck in limbo, facing lawsuits, enforcement actions and denied access to basic banking services under Gary Gensler’s Securities and Exchange Commission. 

Related: Ripple celebrates SEC’s dropped appeal, but crypto rules still not set

While “debanking” remains a concern, industry leaders say momentum is changing. Ripple CEO Brad Garlinghouse said in a recent media interview that the SEC is expected to take a “very constructive and positive” stance toward the industry.

Ripple itself spent years in a legal battle with the SEC, which sued the company in December 2020. On May 8, Ripple and the SEC reached a settlement to formally end the case, pending court approval.

Ripple’s next moves include stablecoins

Garlinghouse said Ripple intends to continue exploring acquisitions.

“I wouldn’t be surprised if in the next year or two we saw the acquisition of a large-scale point-of-sale company to expand their territory from backend financial services to more direct consumer payments,” King said.

On April 30, Bloomberg reported that Ripple made a $4 billion-to-$5 billion bid to acquire Circle, which was rejected for being too low.

Ripple’s recent moves show it’s willing to pursue high-stakes acquisitions, including plays to absorb stablecoin rivals.

All banks will jump on stablecoins soon, and that will reshape US finance, according to King. Source: Austin King

“The practical integration of XRP remains limited since institutions still hesitate to use volatile crypto assets for core settlement,” said Hadley Stern, chief commercial officer at Marinade. “RLUSD is more promising, but it still faces major competition from incumbents like USDC and PayPal USD.”

Stablecoin regulation in the US remains unresolved. The Guiding and Establishing National Innovation for US Stablecoins of 2025 Act — known as the GENIUS Act — failed to pass cloture in the Senate on May 8.

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Crypto exchange Coinbase’s total revenue fell 10% quarter-over-quarter to $2 billion in Q1, missing industry estimates by 4.1% as trading activity slowed across the market.

Coinbase’s net income was sliced by 95% from a near-company record $1.29 billion in Q4 to $66 million, in a large part due to Coinbase marking a $596 million paper loss on its crypto holdings.

The firm’s earnings per share of $1.94, however, managed to beat the Zacks Consensus Estimate of $1.85 for the quarter.

Coinbase’s May 8 results also showed that transaction revenue fell 18.9% quarter-on-quarter to $1.26 billion, as did trading volumes, which dipped 10.5% to $393 billion as crypto market cap dropped by double digits over the quarter, partly attributed to the Trump administration’s tariffs. 

In contrast, US President Donald Trump’s election win in November was considered one of the main catalysts behind the rising market prices in Q4. 

Key financial metrics for Coinbase in Q1. Source: Coinbase

Meanwhile, Coinbase’s subscription and services revenue rose 8.9% to $698.1 million, with stablecoin revenue the most significant contributor.

Despite the fall in total revenue and trading volume, Coinbase said it gained more market share in global spot and derivatives trading while deepening its presence in emerging markets such as Argentina and India with “critical registrations.”

On the regulatory front, Coinbase said the dismissal of its lawsuit with the US securities regulator marked a “major judicial win for balanced, innovation-friendly regulation, and our efforts to make crypto mainstream.”

Coinbase makes deal with major crypto derivatives platform

On May 8, Coinbase agreed to acquire crypto derivatives platform Deribit for $2.9 billion, marking the industry’s largest corporate acquisition to date. 

The acquisition will expand Coinbase’s footprint in the crypto derivatives market immensely, which previously had been limited to its Bermuda-based platform.

Coinbase noted that Deribit facilitated over $1 trillion in trading volume in 2024 and has around $30 billion of current open interest. 

Related: $45 million stolen from Coinbase users in the last week — ZachXBT

The deal now makes Coinbase the “global leader” in crypto derivatives trading, the firm said. 

Competitor firm Kraken struck a similar deal in March when it agreed to acquire futures brokerage NinjaTrader for $1.5 billion.

Coinbase’s Deribit deal contributed to a 5.1% rise in Coinbase’s (COIN) share price during the May 8 trading day, though shares have pulled back 3.1% in after-hours since the crypto exchange posted its Q1 results.

Coinbase’s change in share price on May 8, including after-hours. Source: Google Finance

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Crypto exchange Coinbase’s total revenue fell 10% quarter-over-quarter to $2 billion in Q1, missing industry estimates by 4.1% as trading activity slowed across the market.

Coinbase’s net income was sliced by 95% from a near-company record $1.29 billion in Q4 to $66 million, in a large part due to Coinbase marking a $596 million paper loss on its crypto holdings.

The firm’s earnings per share of $1.94, however, managed to beat the Zacks Consensus Estimate of $1.85 for the quarter.

Coinbase’s May 8 results also showed that transaction revenue fell 18.9% quarter-on-quarter to $1.26 billion, as did trading volumes, which dipped 10.5% to $393 billion as crypto market cap dropped by double digits over the quarter, partly attributed to the Trump administration’s tariffs. 

In contrast, US President Donald Trump’s election win in November was considered one of the main catalysts behind the rising market prices in Q4. 

Key financial metrics for Coinbase in Q1. Source: Coinbase

Meanwhile, Coinbase’s subscription and services revenue rose 8.9% to $698.1 million, with stablecoin revenue the most significant contributor.

Despite the fall in total revenue and trading volume, Coinbase said it gained more market share in global spot and derivatives trading while deepening its presence in emerging markets such as Argentina and India with “critical registrations.”

On the regulatory front, Coinbase said the dismissal of its lawsuit with the US securities regulator marked a “major judicial win for balanced, innovation-friendly regulation, and our efforts to make crypto mainstream.”

Coinbase makes deal with major crypto derivatives platform

On May 8, Coinbase agreed to acquire crypto derivatives platform Deribit for $2.9 billion, marking the industry’s largest corporate acquisition to date. 

The acquisition will expand Coinbase’s footprint in the crypto derivatives market immensely, which previously had been limited to its Bermuda-based platform.

Coinbase noted that Deribit facilitated over $1 trillion in trading volume in 2024 and has around $30 billion of current open interest. 

Related: $45 million stolen from Coinbase users in the last week — ZachXBT

The deal now makes Coinbase the “global leader” in crypto derivatives trading, the firm said. 

Competitor firm Kraken struck a similar deal in March when it agreed to acquire futures brokerage NinjaTrader for $1.5 billion.

Coinbase’s Deribit deal contributed to a 5.1% rise in Coinbase’s (COIN) share price during the May 8 trading day, though shares have pulled back 3.1% in after-hours since the crypto exchange posted its Q1 results.

Coinbase’s change in share price on May 8, including after-hours. Source: Google Finance

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Tech company Meta is reportedly exploring integrating stablecoin payments into its platforms after a three-year hiatus from cryptocurrencies, Fortune reported, citing sources familiar with the matter.

The Facebook parent held talks with several crypto infrastructure firms in consultation but has not chosen a decisive course of action, according to the report.

One source said the company may take a multi-token approach and integrate support for popular stablecoins such as Tether’s USDt (USDT), Circle’s USD Coin (USDC) and others.

Meta is the latest tech firm to integrate or explore the use of stablecoins for payments, as they increasingly attract institutional interest and investment, causing the stablecoin market capitalization to soar past $230 billion.

An overview of the stablecoin market. Source: RWA.XYZ

Related: US Stablecoin bill blocked as Democrats withdraw support

Stablecoins attract more institutional investment and become US strategic interest

Several payment processing companies announced investments into stablecoin companies or announced stablecoin integrations in May this year.

On May 7, payments giant Visa announced that it invested in stablecoin startup BVNK. Although details of the deal remain scant, Visa’s head of products and partnerships, Rubail Birwadker, said stablecoins were commanding an ever-greater market share of payments.

Stripe, a global payments platform, launched stablecoin-based accounts for customers in over 100 countries on May 7.

The accounts allow users to store stablecoin balances or transfer the tokens to other users and withdraw the stablecoin balances as fiat currency to traditional bank accounts.

World Liberty Financial (WLFI), a crypto firm backed by US President Donald Trump, launched USD1, a US dollar-pegged stablecoin, in March.

In May, USD1 was the seventh-largest stablecoin by market cap — highlighting the rapid growth of the tokenized fiat market.

The Trump administration has repeatedly stated that stablecoins are central to US policy and a way to extend US dollar hegemony by harnessing demand for US government Treasurys and other government securities.

Source: Scott Bessent

However, comprehensive stablecoin regulations were stalled on May 8 after Democratic Senators blocked the GENIUS Stablecoin bill — dashing the hopes of senior officials in the Trump administration.

“The Senate missed an opportunity to provide leadership today by failing to advance the GENIUS Act. This bill represents a once-in-a-generation opportunity to expand dollar dominance,” Treasury Secretary Scott Bessent wrote in a May 8 X post.

Magazine: Unstablecoins: Depegging, bank runs and other risks loom

Wellgistics Health, a healthcare infrastructure company, will integrate XRP (XRP) and related technologies into its payment network to streamline transactions between pharmacies, medical suppliers and prescription medication manufacturers, the company said in an announcement on May 8.

Wellgistics cited the finality time of XRP transactions and reduced transaction costs, which are fractions of a penny, compared to legacy financial architecture like automated clearinghouse (ACH) payments or wire transfers, as reasons for using XRP. Brian Norton, CEO of Wellgistics Health, said in the announcement:

“I believe that the future winners in healthcare will not be the companies with the biggest buildings, they will be those with the fastest rails, cleanest data, and most efficient platforms. We are betting on infrastructure — not inertia.”

The integration of XRP will reduce cross-border friction and allow transactions between different businesses in the supply chain to settle instantly, in real time, the announcement reads.

Blockchain payment rails and cryptocurrencies can significantly reduce international transaction costs, giving rise to business opportunities that were previously out of reach or too expensive to implement and opening up global trade for residents in developing economies.

Related: Can XRP price reach $4 in May? Analysts are watching these key levels

Legacy banking system pushes back against crypto innovation

Cryptocurrencies like Bitcoin (BTC) disintermediate banks and financial institutions by providing peer-to-peer transactions over a trustless network of decentralized nodes that are censorship-resistant and give the holder self-sovereignty over their money.

Other cryptocurrencies like stablecoins and altcoins still feature a third-party issuer, but have the benefit of trading on blockchain payment rails, through the internet, without markets closing.

Banks and legacy financial institutions pushed back against the GENIUS stablecoin bill in March 2025, arguing that stablecoins would erode the banking industry’s market share of financial services and eventually drive out banks altogether.

US Senator Elizabeth Warren also fought to include several provisions in the bill that would force any stablecoin firm that wants to do business in the United States to issue their stablecoin with the oversight of an established financial institution.

The bill, hailed as a bipartisan success, failed to advance to a floor vote on May 8 after pushback from Democratic senators.

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Coinbase’s agreement to buy Deribit highlights the increasing importance of financial derivatives for cryptocurrency exchanges, according to industry executives. 

On May 8, Coinbase, the US’s largest crypto exchange by trading volume, agreed to acquire crypto derivatives platform Deribit for $2.9 billion in the crypto industry’s largest corporate acquisition to date.  

The deal reflects increasing competition among digital asset exchanges and brokerages — including Coinbase, Kraken and Robinhood — to dominate the burgeoning crypto derivatives market. 

“Global derivatives trading is a key driver of growth for Coinbase,” Spencer Yang, co-founder of Fractal Bitcoin, a Bitcoin scaling solution, told Cointelegraph.

Coinbase agreed to buy Deribit on May 8. Source: Coinbase

The merger established Coinbase as the world’s largest crypto derivatives platform by open interest, the exchange said in a blog post announcing the deal. 

In a May 8 X post, Jeff Park, Bitwise’s head of alpha strategies, said Coinbase’s Deribit acquisition “might be the best ‘value’ deal in crypto I’ve ever seen,” adding the deal is “a coup for Coinbase.”

In March, US crypto exchange Kraken agreed to buy NinjaTrader, a futures brokerage, for $1.5 billion.

Coinbase’s international derivatives exchange saw some $10 billion in trading volume on May 8. Source: Coinbase

Related: Coinbase to acquire options trading platform Deribit for $2.9B

Expanding global footprint

Coinbase already has a global presence in perpetual futures, with roughly $10 billion in daily trading volume as of May 8. It also has a US-based derivatives trading platform listing more than 20 futures contracts. 

Deribit is the largest crypto options exchange, with about $30 billion in open interest, according to the blog post. 

With this acquisition, Coinbase “has captured all possible regulated and self-regulated derivatives products,” Yang added.

It also bolstered Coinbase’s presence in the global market, which is still dominated by Binance, the world’s largest crypto exchange by volume. Deribit does not serve US-based traders, according to its website. 

“Deribit is the platform of choice for global traders for Bitcoin and Ethereum options,” Yang said.

Futures contracts are standardized agreements to buy or sell an underlying asset at a future date, often using leverage in a bid to enhance returns.

Options are contracts granting the right to buy or sell — “call” or “put,” in trader parlance — an underlying asset at a certain price.

Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight

Key takeaways:

97% of the $8.3 billion in Bitcoin put options expire worthless at a $102,000 BTC price.

Short covering above $105,000 could trigger a Bitcoin price rally to new highs.

Bitcoin (BTC) soared above $101,000 on May 8, reaching its highest level in over three months. The 4.6% daily BTC price gain triggered $205 million in liquidations of bearish futures positions and eroded the value of nearly every put (sell) option. Traders now question whether Bitcoin is poised to break its $109,354 all-time high in the near term.

Bitcoin put (sell) options open interest for May-June-July, USD notional. Source: Laevitas.ch

The aggregate Bitcoin put (sell) option open interest for the next three months stands at $8.3 billion, but 97% of those have been placed below $101,000 and will likely expire worthless. Still, this does not mean every put options trader was betting on Bitcoin’s downside, as some may have sold those instruments and profited from the price gains.

Top BTC option strategies at Deribit past two weeks. Source: Laevitas.ch

Among the largest option strategies traded at Deribit is the “bull put spread,” which involves selling a put option while simultaneously buying another put at a lower strike price, capping both maximum profit and downside risk. For example, a trader aiming to profit from higher prices might sell the $100,000 put and buy the $95,000 put.

Bull put spread profit/loss. Source: Strike-Money

Cryptocurrency traders are known for their exaggerated optimism, and this is reflected in the leading strategies on Deribit’s options markets, such as the “bull call spread” and the “bull diagonal spread.” In both cases, traders anticipate Bitcoin prices at expiry to be equal to or higher than the options traded.

$100,000 Bitcoin boosts bullish options, but shorts may resist

If Bitcoin sustains the $100,000 level, most bullish strategies will yield positive results in the May and June options expiries, giving traders additional incentives to support upward momentum. However, there is the possibility that sellers (shorts) using futures markets will exert their influence to prevent a new Bitcoin all-time high.

Related: Coinbase to acquire options trading platform Deribit for $2.9B

The aggregate open interest on Bitcoin futures currently stands at $69 billion, indicating substantial demand for short (sell) positions. At the same time, higher prices might force bears to close their positions. However, this “short covering” effect is significantly muted in fully hedged positions, meaning those traders are not particularly sensitive to Bitcoin price movements.

For instance, one could buy spot Bitcoin positions using margin or spot exchange-traded funds (ETFs) while simultaneously selling the equivalent in BTC futures. Known as the “carry trade,” this strategy is delta neutral, so the profit comes regardless of price swings, as the monthly Bitcoin futures trade at a premium to compensate for the longer settlement period.

Bitcoin 2-month futures annualized premium. Source: laevitas.ch

The Bitcoin futures premium has been below 8% for the past three months, so the incentives for the “carry trade” have been limited. Hence, it is likely that some form of “short covering” will occur if Bitcoin surges above $105,000, which greatly improves the odds of a new all-time high over the next couple of months.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Michelle Bond, the wife of former FTX Digital Markets co-CEO Ryan Salame, who faces federal campaign finance charges, is pushing for dismissal on the grounds that US prosecutors deceived her husband in a plea deal.

In a May 7 filing in the US District Court for the Southern District of New York, Bond’s lawyers reiterated some of the claims Salame made in opposing his plea deal with the government, which ultimately still led to him serving time in prison. She claimed that prosecutors obtained a deal with Salame through “stealth and deception” by allegedly agreeing they would not file charges against Bond. 

“Mr. Salame and Ms. Bond’s attorneys were advised that the agreement to cease investigating Ms. Bond could not be placed within the four corners of the Salame plea or other written agreement, but the government still offered it as an inducement to induce the plea,” said the filing, adding:

“At a minimum, enough exists to demonstrate a legitimate factual dispute as to the nature and scope of the promises made to Mr. Salame and Ms. Bond to induce his guilty plea such that a hearing with discovery is required.”May 7 filing requesting a dismissal of one charge for Michelle Bond. Source: Courtlistener

Prosecutors charged Bond in August 2024 with conspiracy to cause unlawful campaign contributions, causing and accepting excessive campaign contributions, causing and receiving an unlawful corporate contribution, and causing and receiving a conduit contribution related to her failed run for a seat in the US House of Representatives in 2022.

Salame, who pleaded guilty to two felony charges in 2023 and was later sentenced to more than seven years in prison, attempted to void his deal with prosecutors, claiming it had included an agreement not to charge Bond.

Related: Former FTX executive Ryan Salame’s prison sentence reduced by 1 year

The May 7 filing requested the court suppress any statements Bond made after the alleged “inducement” in Salame’s deal. The former FTX executive made similar claims in court filings attempting to nullify his plea, but later dropped the matter and reported to prison in October 2024.

Bond hinted that her running as a Republican — similar politically-motivated claims made by Salame — had contributed to the campaign finance charges. The indictment alleged she filed false reports to the Federal Election Commission related to funds used for her campaign.

The FTX saga hasn’t ended… yet

Since the collapse of FTX in 2022, nearly all former executives indicted on charges related to the misuse of the crypto exchange’s funds have had their day in court.

Former FTX CEO Sam Bankman-Fried, who pleaded not guilty, went through a trial in 2023 and was later sentenced to 25 years in prison. His lawyers filed a notice of appeal, and reports suggested he may be looking for a pardon from US President Donald Trump.

Caroline Ellison, the former CEO of Alameda Research, was sentenced to two years in prison in September 2024 as part of a plea deal and began serving her time in November. Nishad Singh and Gary Wang, former FTX executives who also pleaded guilty to charges, were each sentenced to time served in 2024.

Magazine: XRP win leaves Ripple and industry with no crypto legal precedent set

The US federal court for the Southern District of New York has sentenced former Celsius CEO Alex Mashinsky to 12 years in prison for fraud.

Mashinsky’s legal team sought a light sentence. They highlighted his spotless record before the Celsius incident, along with his military service and willingness to plead guilty. But US prosecutors were less inclined to leniency, suggesting on April 28 that the judge deliver a 20-year sentence for his actions.

Betting markets predicted a light sentence ahead of the May 8 hearing. Polymarket showed only 11% odds for a 20-year sentence or higher.

Source: Polymarket

President Donald Trump began his second term with high-profile pardons of crypto executives, signalling that his administration may bring leniency to crypto fraudsters like Mashinsky. His sentencing today, however, suggests otherwise.

Trump’s DOJ wants Mashinsky sentence to serve as a warning

Crypto-related crimes have their limits, according to the current US Department of Justice. Jay Clayton, the Trump-nominated US attorney leading the prosecution, said on April 28 that the suggested 20-year sentence serves as a “critical warning to other entrepreneurs, executives, and promoters in the cryptocurrency industry and in any future industry as-yet unconceived: that fraud will be punished severely, regardless of the technology or industry in which it occurs.”

Bitcoin advocate Jameson Lopp quotes the prosecution’s argument that Mashinsky targeted retail investors. Source: Jameson Lopp

Clayton argued that a strong sentence was warranted as the fraud targeted unsophisticated retail investors rather than institutional parties with protections and expertise. Mashinsky “preyed on ordinary individuals who relied on his promises of safety and financial security.” 

The Mashinsky defense team drew attention to Mashinsky’s character, highlighting his long career in business, devotion to family and service with the Israel Defense Forces. 

His lawyers also drew distinctions between Mashinsky’s case and that of Bankman-Fried, claiming, “There are no allegations — let alone any proof — that Alex misappropriated, embezzled or stole any customer assets or any Celsius money.”

On May 5, Mashinsky’s legal team argued that these mitigating factors should warrant a sentence of no more than 366 days.

“The government’s venom-laced submission recasts this case as one involving a predator with an intent to target victims, harm them, and steal their money,” his team said.

Mashinsky’s lawyers called the suggested 20-year term a “death-in-prison sentence.”

Mashinsky’s sentence follows high-profile Trump pardons for crypto execs

Trump started his term with the pardon of Silk Road 2.0 founder Ross Ulbricht, whose acceptance of Bitcoin (BTC) on his narcotics trading platform endeared him to the crypto community. 

The president also commuted the sentences of Arthur Hayes, Benjamin Delo and Samuel Reed, three BitMEX crypto exchange executives who pleaded guilty to violating the Bank Secrecy Act and failing to establish a proper Anti-Money Laundering program.

Sam Mangel, a consultant to white-collar convicts who advised former Trump staffer Steve Bannon and Bankman-Fried, told Politico there has been a large spike in interest in presidential pardons.

“Everybody that is in prison now is keenly aware of the environment, and it’s become a very hot topic within the low- and minimum-security inmate communities,” said Mangel.

Related: US stablecoin bill loses democrats amid Trump corruption concerns

High-profile crypto defendants seem to have taken notice, too. Roger Ver, an early Bitcoin advocate and libertarian activist, is facing federal tax evasion charges. In January, he released a video making an outright plea to Trump for a commutation. Ver claimed that he is the victim of lawfare and likened his persecution to Trump’s legal problems following the Jan. 6 scandal. 

Sam Bankman-Fried, the disgraced former CEO of now-defunct exchange FTX, likened his court experience with Trump’s defamation lawsuit in an interview with The New York Sun on Feb. 18.

He claimed his trial was politicized under the Biden administration and that he didn’t think there was “a very fair and balanced view or approach.” His parents also reportedly met with lawyers and people close to the Trump administration to explore the possibility of a presidential pardon. 

Trump’s commutation of the BitMEX executives has even led former Binance CEO Changpeng Zhao to apply for clemency. On May 6, Zhao said that his lawyers had submitted an application and were awaiting a response.

The current administration is still writing the rules of the road as regulators reshuffle personnel and priorities and new legal frameworks for crypto take shape. The picture is further muddled by Trump’s own crypto projects, which have raised concerns over corruption and conflicts of interest. Mashinsky’s sentence shows that, for the financial world, certain crimes will not go unpunished. 

Magazine: Adam Back says Bitcoin price cycle ’10x bigger’ but will still decisively break above $100K