Former Celsius CEO Seeks Dismissal of Fraud Charges
Alex Mashinsky, the former CEO of Celsius Network, has filed a motion to dismiss charges of commodities fraud and market manipulation. Mashinsky argues that the charges are inconsistent with the US government’s unclear stance on whether cryptocurrencies should be classified as securities or commodities. He points out that it is unclear whether Celsius’ Earn program constituted the purchase of a security and the sale of a commodity simultaneously. Mashinsky’s legal team insists that the commodities fraud charges should be dismissed to avoid a lengthy legal process. They also request the removal of mentions of Celsius’ bankruptcy proceedings from court records. The trial is scheduled for September 2024.
Mashinsky Joins List of Crypto Failures
The Celsius Network suffered during the 2022 market downturn and eventually filed for bankruptcy due to over-exposure to risky financial instruments. Mashinsky is not the only crypto figure facing legal issues, as Binance’s founder Changpeng Zhao (CZ) was stripped of his powers by US authorities for violating AML and CFT laws. Binance was fined $4.3 billion and CZ was asked to step down as CEO. He is now facing separate charges for fraud and money laundering, with a trial set for February 2024.
Hot Take: Mashinsky’s Attempt to Dismiss Fraud Charges
Alex Mashinsky, former CEO of Celsius Network, has requested the dismissal of commodities fraud and market manipulation charges against him. He argues that these charges are inconsistent with the US government’s unclear classification of cryptocurrencies as securities or commodities. Mashinsky’s legal team believes that dismissing the fraud charges will prevent a lengthy legal process. However, he is not alone in facing legal troubles in the crypto industry. Binance’s founder, Changpeng Zhao, has also been stripped of his powers and faces charges for violating anti-money laundering and counter-terrorism financing laws. These cases highlight the regulatory challenges faced by crypto industry leaders.
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