The commencement of the trial for former Celsius CEO Alex Mashinsky was postponed by U.S. District Judge John Koeltl due to the “volume of discovery” and “complexity of the case.”
Attorneys from the US Department of Justice have been given more time for discovery in the court case against former Celsius CEO Alex Mashinsky, which has important ramifications. According to the decision issued on July 25 by U.S. District Judge John Koeltl, the time between July 25 and October 3 may be excluded from the Speedy Trial Act calculations, which mandates that a federal criminal trial begin no later than 70 days after the indictment.
The “volume of discovery” and “complexity of the case” against Mashinsky, which required more time for his defense team to study associated papers, were the driving forces for the decision. Judge Koeltl highlighted that the pursuit of justice was more important than having a quick trial.
According to the Speedy Trial Act, prosecutors must reveal any relevant information that is favorable to the accused. Mashinsky, who left his position as CEO of Celsius in September 2022, is suspected of deceiving clients and giving false information about Celsius’ business procedures. He has been charged with securities fraud, commodities fraud, and wire fraud. He was nevertheless released on a $40 million bond after entering a not guilty plea to each allegation.
Mashinsky is scheduled to appear in court on October 3 in New York, one day after the former FTX CEO Sam Bankman-Fried’s trial, which took place in the same district.
Celsius has been embroiled in a complex legal situation since the company filed for Chapter 11 bankruptcy in July 2022, which was followed by regulatory actions against Mashinsky. Both the Securities and Exchange Commission and the Commodity Futures Trading Commission filed complaints against him in civil court. Additionally, Celsius was hit with a stunning $4.7 billion fine by the Federal Trade Commission in July.
All eyes are on the courtroom as the legal drama plays out because there, crucial revelations and evidence will determine the fate of the former Celsius CEO and the course of justice in this well-known case.