The former CEO of Celsius Network, Alex Mashinsky, is set to face his criminal trial on September 17, 2024, as determined by a New York court. The crypto lender declared bankruptcy in July 2022. While the U.S. Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) reached settlements with Celsius in July, both agencies, along with the Federal Trade Commission (FTC), have ongoing cases against Mashinsky.
The Alex Mashinsky Case
In July 2023, U.S. prosecutors charged Alex Mashinsky with defrauding Celsius customers and manipulating the market for Celsius’s crypto token. They also charged Roni Cohen-Pavon, former Celsius Chief Revenue Officer, with market manipulation. Celsius Network accepted responsibility and pledged to support the prosecutors.
Leading up to the trial, three pretrial conferences have been scheduled for March, July, and September. Alex Mashinsky has been granted freedom on a $40 million bail throughout the legal process. However, he faces significant restrictions on his travel and certain financial activities.
This recent hearing signifies one of the initial developments in Mashinsky’s criminal case since his arrest earlier in July. The allegations against him claim that he deceived Celsius investors and orchestrated a fraud that cost users billions of dollars.
In a subsequent move in September, the court imposed a freeze on a substantial portion of Mashinsky’s assets, encompassing his bank accounts and real estate holdings.
In related news, Roni Cohen-Pavon, who previously held the position of chief revenue officer at Celsius, entered a guilty plea to four criminal counts in September. He has been granted bail until his sentencing in December and might be summoned to provide testimony during Mashinsky’s trial.
Trial Against FTX Founder Started
The early days of October have witnessed the commencement of several notable court cases within the realm of cryptocurrency. The jury selection for the criminal trial of Sam Bankman-Fried (SBF), the former CEO of the collapsed and bankrupt FTX, began on October 3.
Former crypto billionaire and FTX founder Sam Bankman-Fried is facing decades in prison as his trial over what has been called one of the biggest financial frauds in US history gets underway. The 31-year-old, who once ran one of the world’s biggest crypto exchanges, is accused of stealing billions from customers and investors. He has denied the claims and pleaded not guilty.
