Alex Mashinsky, the former CEO of the bankrupt cryptocurrency platform Celsius, is scheduled to appear in court on November 13 to face charges of securities fraud, commodities fraud, wire fraud, and market manipulation. This will be his first in-person appearance since February.
Mashinsky’s legal team has filed a motion to dismiss certain charges against him. Judge John Koeltl has ordered both sides to present arguments on this motion and to preserve potential testimony. A pretrial conference is set for January 16, and a jury trial is scheduled to begin on January 28, 2025.
Mashinsky’s Alleged Crimes
Mashinsky and Roni Cohen-Pavon, Celsius’s former Chief Revenue Officer, are accused of manipulating the price of the platform’s native token, CEL, while secretly selling their own holdings at inflated prices. They allegedly profited millions from these sales.
Additionally, Mashinsky and Cohen-Pavon are accused of misleading customers about Celsius’s financial health and the nature of their investments. In July 2023, Mashinsky was arrested and charged with seven felony counts. He has pleaded not guilty.
Celsius’s Bankruptcy
Celsius filed for bankruptcy in July 2022, owing billions to creditors. As of August 2024, the company has repaid approximately $2.53 billion, representing about 84% of the total debt.