Former Celsius CEO Mashinsky's criminal trial scheduled for September 2024

2023-10-04 08:56:41

The government filed multiple charges against Mashinsky, including wire fraud and securities fraud.

On October 3, Celsius co-founder and former CEO Alex Mashinsky will appear in court in September 2024.

The report indicates that Mashinsky’s trial is scheduled for September 17, 2024. Mashinsky was charged with securities fraud, commodities fraud, wire fraud and conspiracy to manipulate the value of the company’s native crypto token, CEL.

While the full details of Mashinsky’s defense strategy are unclear, it appears his attorneys will base their case on the ambiguity of cryptocurrency’s legal status. In a court statement cited by Bloomberg, a lawyer said “the law on what constitutes a security is fluid.”

A trial date was set at an Oct. 3 hearing. Although public court records in the Mashinsky case do not yet reflect the recent changes, records confirm that new documents were filed today.

The case has been developing for months

Mashinsky was initially arrested and charged on July 13, 2023. He was released on $40 million bail on July 14, but his assets were frozen in August.

Mashinsky’s criminal fraud case is being prosecuted by the U.S. Attorney’s Office for the Southern District of New York, a division of the U.S. Department of Justice. He faces separate civil fraud cases with the New York Attorney General’s Office and securities cases with the U.S. Securities and Exchange Commission.

Last year, Celsius collapsed under Mashinsky’s management. It stopped making withdrawals in June 2022 and entered bankruptcy proceedings in July 2022. These bankruptcy proceedings are separate from the main criminal case against Mashinsky.

Celsius is currently working to rebuild and compensate customers affected by the company’s collapse

The company was said to owe about $4.2 billion to more than 100,000 creditors at the time of bankruptcy. Recent reports indicate that it may pay around $2 billion in cryptocurrency plus shares in the company and the lawsuit against Mashinsky.

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