Former CEO of Celsius Faces Asset Seizure in Crypto Criminal Case
A recent court order has revealed that authorities have taken control of assets belonging to Alex Mashinksy, the former CEO of the bankrupt crypto lending company Celsius. The Department of Justice (DOJ) is currently pursuing a criminal case against Celsius, and the order states that Mashinksy’s bank accounts with Goldman Sachs, Merrill Lynch, First Republic, and SoFi have been frozen. Additionally, a home in Austin, Texas, purchased by Mashinksy in July 2021, has also been seized.
This court order, issued on August 16th but unsealed on August 31st, aims to prevent any interference from third parties. The charges against Mashinksy and Celsius’ chief revenue officer, Roni Cohen-Pavon, include wire fraud, securities fraud, commodities fraud, and market manipulation. They are accused of misleading customers by presenting Celsius as a bank-like institution, while engaging in risky trades with customers’ funds. Furthermore, they allegedly manipulated the price of Celsius’ native asset, CEL, to their financial advantage.
Hot Take:
The seizure of assets and the ongoing criminal case against Alex Mashinksy and Celsius highlight the need for transparency and accountability in the crypto industry. As an investor, it is crucial to research and understand the platforms and companies you engage with to avoid falling victim to fraudulent schemes. Stay informed, exercise caution, and rely on trusted sources to navigate the complex world of cryptocurrencies.
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