Fraud trial of Celsius’s former CEO set for September 2024

The criminal fraud trial of Celsius’s former chief executive Alex Mashinsky has been scheduled for September 17, 2024. Bloomberg reports.

According to the agency, during hearings in a U.S. district court, his lawyers signaled a defense strategy, stating they intended to consider whether the cryptocurrency is a security.

“The law on what constitutes a security is changing,” said defense attorney Robert Frenchman.

In January 2023, the New York Attorney General accused Mashinsky of defrauding investors of billions of dollars. He was arrested in July.

In the same month, the U.S. Department of Justice brought seven more criminal charges against the former Celsius chief and the platform, including securities fraud, manipulation of the CEL token price, misleading investors, and conspiracy to defraud customers.

Mashinsky has pleaded not guilty to all counts. He was later released on $40 million bail. In September, the court ordered to freeze the assets of the former Celsius CEO for the duration of the proceedings.

In June 2022 Celsius paused withdrawals, exchanges and transfers between accounts due to extreme market conditions.

After the bankruptcy filing in Celsius, the company reported a “hole” in its balance sheet of $1.2 billion. In August it emerged that the company’s liabilities exceeded its assets by $2.85 billion.

In September, Alex Mashinsky left his post as chief executive.