The criminal trial for former Celsius Network CEO Alex Mashinsky is expected to begin on September 17, 2024, in New York. This choice was decided during a hearing on October 3 at the Southern District of New York’s United States District Court, which was presided over by Judge John Koeltl. Mashinsky will be free on bail for the duration of the judicial process; it has been set at $40 million. His ability to travel and conduct financial activities is nevertheless subject to some limitations.
This development marks one of the significant milestones in Mashinsky’s criminal case since his arrest in July. The charges against him allege that he misled Celsius investors and defrauded users of billions of dollars. In September, the court froze numerous assets belonging to Mashinsky, including his bank accounts and property.
Another notable aspect of this case is the guilty plea of Roni Cohen-Pavon, the former Chief Revenue Officer of Celsius. In September, Cohen-Pavon pleaded guilty to four criminal charges. He will remain on bail until his sentencing hearing in December and will be available to testify in Mashinsky’s trial if necessary.
The cryptocurrency space has seen several high-profile court cases in early October. Jury selection for the criminal trial of former FTX CEO Sam Bankman-Fried began on October 3, while former U.S. President Donald Trump faces a civil fraud lawsuit related to his business practices.
It’s essential to note that Celsius Network filed for bankruptcy in July 2022, leading to Mashinsky stepping down as CEO in September of the same year. Regulatory authorities, including the U.S. Commodity Futures Trading Commission and the Securities and Exchange Commission, reached settlements with Celsius in July. However, they, along with the Federal Trade Commission, still have pending cases against Mashinsky.
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