Pending the start of trial, Alex Mashinsky will remain on his $40M bail, with his travel and financial transactions restricted.
Former CEO of Celsius Alex Mashinsky criminal trial is set to start in September next year. This development comes in the wake of allegations agaainst him for defrauding customers.
Alex Mashinsky trial to start next year
According to a report from Bloomberg, trial for former CEO of Celsius Alex Mashinsky is set to begin on September 17, 2024.
In an October 3 hearing in the United States District Court for the Southern District of New York, Judge John Koelti affirmed that Mashinsky’s criminal trial shall begin in September 2024. There would be pretrial conferences in March, July, and September.
Pending the start of trial, Alex Mashinsky will remain on his $40M bail, with his travel and financial transactions restricted.
Through reports on court argument, Mashinsky’s counsel may try to plead their defence on the ambiguity surrounding the legal status of cryptocurrencies. One lawyer said that the “law about what is a security is fluid” in an in-court statement.
Read more: FTX founder trial starts today, lawyers move to block witness testimony
On July 13, 2023, Mashinsky was arrested and charged. On July 14, he was freed after posting a $40M bond, but his assets were seized in August.
The Department of Justice’s U.S. Attorney’s Office for the Southern District of New York is prosecuting Mashinsky for criminal fraud. The New York Attorney General’s office filed a civil fraud action against him, and the US Securities and Exchange Commission (SEC) also filed a securities case against him.
In July 2022, Celsius Network declared bankruptcy, and in September 2022, Mashinsky resigned as CEO. At the time of bankruptcy, the company reportedly owed $4.2B to more than 100,000 creditors.
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