US Department of Justice Freezes Alex Mashinsky’s Accounts
Take note, crypto reader. On August 16, the US Department of Justice (DoJ) made a move to freeze the business accounts of Alex Mashinsky, the former CEO of Celsius, as well as a Texas property co-owned by his spouse, Kristine Mashinsky. This freeze is part of an ongoing criminal investigation. Now, let’s dig deeper into the details.
Affected Accounts and Properties
The freeze has impacted several accounts owned by Mashinsky. Four accounts under the company name Koala LLC at Goldman Sachs, three accounts at SoFi Bank and SoFi Securities, and another account named AM Ventures at Merrill Lynch were all frozen. This action was authorized by Judge Jed Rakoff of the Southern District of New York.
Allegations and Arrest
The US Department of Justice had indicted Mashinsky back on July 13, accusing him of defrauding customers by making false claims about Celsius’ financial health. Moreover, it is alleged that Mashinsky misled investors and conspired with the former chief revenue officer to manipulate CEL token prices. As a result, Mashinsky was arrested, facing charges of securities fraud among others. However, he denies these allegations and was released on bail amounting to $40 million.
The Downfall of Celsius
Let’s talk about Celsius. In July 2022, the company suffered a major crash alongside other significant crypto collapses, potentially triggered by the implosion of Terra tokens. As a consequence, Celsius now owes a staggering sum to 100,000 creditors, with liabilities and assets estimated to be between $1 billion and $10 billion.
Upcoming Court Appearance
Mark your calendar. Mashinsky is set to appear in a New York courtroom on October 3 for a conference with federal prosecutors. Interestingly, this coincides with the start of the trial for FTX founder Sam Bankman-Fried. The Securities and Exchange Commission and Commodity Futures Trading Commission also have cases against Mashinsky.
Hot Take
Stay tuned as the legal battles of prominent figures in the cryptocurrency industry unfold, shedding light on potential fraudulent activities and their impact on the market.
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