The US SEC has recently filed a lawsuit against Alex Mashinsky over criminal charges and securities fraud.
Attorneys from the US Department of Justice have been given more time to gather and provide documents related to the case of former Celsius CEO Alex Mashinsky. The US District Judge John Koeltl has excluded the period between July 25 and October 3 from the Speedy Trial Act calculations.
This law requires a federal criminal trial to start within 70 days after the filing of an indictment. Also, the reason for the extension is due to the large amount of evidence to review and the complexity of the case against the former Celsius CEO.
Judge Koeltl said:
“The Court finds that the ends of justice served by granting the continuance outweigh the best interest of the defendant and the public in a speedy trial”.
According to the law, prosecutors are required to share any information that could benefit Alex Mashinsky’s defense and is important for determining guilt or punishment. The conference on October 3 will take place in a New York courtroom, coincidentally just one day after the trial of former FTX CEO Sam Bankman-Fried starts in the same district, as he faces similar charges.
Former Celsius CEO Alex Mashinsky Faces the US SEC
On July 13, US authorities arrested Alex Mashinsky, the former CEO of Celsius, on charges of securities fraud, commodities fraud, and wire fraud. They also accused him of deceiving customers and providing false information about Celsius’ business practices. Mashinsky has pleaded not guilty to all charges and has been released on a $40 million bond.
Besides, the judge has yet to decide on the trial date for Mashinsky’s criminal case. Besides the criminal charges, the Commodity Futures Trading Commission also filed a complaint against Mashinsky. Additionally, the Securities and Exchange Commission (SEC) filed its own civil lawsuit against him, and the Federal Trade Commission imposed a $4.7 billion fine on Celsius in July.
In July 2022, Celsius filed for Chapter 11 bankruptcy shortly after announcing a pause on all withdrawals with no clear timeline for resumption. Later, Alex Mashinsky stepped down as CEO in September 2022. According to reports, investigators at the CFTC have determined that the crypto lender and its CEO violated important regulations by misleading investors.