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Former Celsius CEO Mashinsky's Criminal Trial Date Set for Next Year, Reports Bloomberg News

Former Celsius CEO Mashinsky’s Criminal Trial Date Set for Next Year, Reports Bloomberg News

Alex Mashinsky’s Criminal Trial Set for September 2024

A criminal trial for Alex Mashinsky, the former CEO of Celsius, is scheduled to begin in approximately one year. Mashinsky’s trial date has been set for September 17, 2024, according to a report by Bloomberg News.

Mashinsky’s Arrest and Plea

Mashinsky was arrested in July on charges of defrauding customers and providing false information about the profitability of the crypto lending platform. However, he pleaded not guilty to these criminal charges. The collapse of Celsius last year resulted in billions of dollars in debt owed to investors.

Accusations Against Mashinsky and Celsius

In addition to Mashinsky, prosecutors accused the company itself of inflating the price of Celsius’s native token using customer assets and repeatedly deceiving customers. Roni Cohen-Pavon, Celsius’ chief revenue officer, was also implicated in the criminal charges and reportedly pleaded guilty last month.

Civil Charges by SEC and CFTC

The Securities and Exchange Commission (SEC) filed a lawsuit against Mashinsky and Celsius in July, alleging that they fraudulently raised billions through unregistered sales of “crypto asset securities,” provided false information about the company’s financial status to investors, and manipulated the price of their native token, CEL. The Commodity Futures Trading Commission (CFTC) also filed its own fraud charges against Mashinsky and Celsius.

Asset Freeze and Trial Date

Mashinsky’s trial date was established after some of his assets were frozen. This includes a property in Texas and funds held at Goldman Sachs, Merrill Lynch, and SoFi Bank.

Hot Take: The Future of Alex Mashinsky

The upcoming criminal trial of Alex Mashinsky will be a significant event in the crypto industry. If found guilty, it could have far-reaching implications for how cryptocurrency lending platforms operate and the level of trust investors place in them. The outcome of this trial will likely shape the regulatory landscape and determine the future of individuals involved in fraudulent practices within the crypto space.

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Former Celsius CEO Mashinsky's Criminal Trial Date Set for Next Year, Reports Bloomberg News