Former Celsius Network CEO to Face Criminal Trial in 2024
Alex Mashinsky, the former CEO of Celsius Network, is scheduled to go on trial for criminal charges starting on September 17, 2024. The trial schedule was confirmed during a hearing held on October 3 in the United States District Court for the Southern District of New York.
Prior to the trial, there will be three pretrial conferences in March, July, and September.
Mashinsky Remains Free on $40 Million Bail
Despite his arrest in July, Mashinsky will remain free on $40 million bail. However, he will face restrictions on travel and certain financial transactions. His legal troubles stem from allegations of misleading investors and defrauding users of Celsius Network out of billions of dollars.
In response to these allegations, authorities froze many of his assets, including bank accounts and property.
Roni Cohen-Pavon, the former Chief Revenue Officer of Celsius Network, has already pleaded guilty to four criminal charges related to the case. He will be available to testify during Mashinsky’s trial.
Celsius Network Filed for Bankruptcy
These legal actions follow Celsius Network’s bankruptcy filing in July 2022 and Mashinsky’s resignation as CEO in September 2022. Government agencies such as the U.S. Commodity Futures Trading Commission, Securities and Exchange Commission, and Federal Trade Commission have pursued cases against both Celsius Network and Mashinsky.
Celsius creditors are currently awaiting court approval to recover their assets based on a restructured proposal by the bankruptcy court.
Hot Take: High-Profile Crypto Industry Legal Cases
The upcoming trial of Alex Mashinsky adds to the series of high-profile legal cases within the cryptocurrency industry and beyond. Sam Bankman-Fried, the former CEO of FTX, is currently undergoing jury selection for his trial, while former U.S. President Donald Trump is facing a civil fraud lawsuit related to his business practices.
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