The Department of Justice Freezes Alex Mashinsky’s Assets
Alex Mashinsky, the former CEO of cryptocurrency lending platform Celsius, is facing a significant legal setback as a U.S. court has frozen his assets. The Department of Justice (DOJ) is leading an ongoing criminal investigation into Mashinsky, which has resulted in the freeze of his corporate bank accounts and a property in Texas. Ever since Mashinsky’s arrest in July, these assets have been rendered untouchable.
Alex Mashinsky’s Financial Holdings Are Frozen
A U.S. federal judge has granted a motion from the Department of Justice to freeze specific bank accounts and real estate assets linked to Alex Mashinsky, the former CEO of Celsius. This decision, formalized in a September 5 filing, has a direct impact on Mashinsky’s financial holdings. Multiple bank accounts, including those held at Goldman Sachs, Merrill Lynch, First Republic Securities, SoFi Bank, and SoFi Securities, have been frozen. Moreover, Mashinsky’s residential property in Austin, Texas, was also included in the asset freeze.
Celsius Founder Faces Securities Fraud Charges
Alex Mashinsky, a co-founder of Celsius, was taken into custody in July on charges of securities fraud and the manipulation of the company’s native CEL token. Although Mashinsky has pleaded not guilty, the Department of Justice claims that he enticed investors to deposit their cryptocurrency assets in Celsius, misleading them about the company’s operations. Prosecutors also allege that Celsius manipulated the market for its CEL token, benefiting from artificially inflated prices.
Celsius Acknowledges Role in Scam
Celsius, now managed by a restructuring team led by ex-JPMorgan Chase banker Chris Ferraro, has acknowledged its involvement in the scam. As part of a non-prosecution agreement with the Department of Justice, Celsius has accepted responsibility for its actions. Meanwhile, Mashinsky secured his release on a $40 million bond. The prosecution is currently compiling evidence, including analyzing Mashinsky’s online videos, which are alleged to contain deceptive information targeting investors.
Hot Take: CEL Token Plunges After Asset Freeze
Following the news of the asset freeze, the value of Celsius’s native cryptocurrency token, CEL, has experienced a slight decline over the past hour. This development highlights the potential consequences that legal actions against key figures in the crypto industry can have on associated assets and investments.
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