Former Celsius CEO Alex Mashinsky Gets Bad News…

September 6, 2023 11:54 am Comments

Alex Mashinsky has just gotten some bad news.

The former CEO of the now-defunct Celsius lending platform was sued by New York Attorney General Letitia James in January of 2023 and arrested by U.S. officials on July 13, 2023.

According to the latest reports, the U.S. District Court for the Southern District of New York has unsealed an order to seize Mashinksky’s financial assets.

Gagarin News provided the corresponding court documents which indicate that “Alex Mashinsky’s bank assets and real estate have been frozen as the criminal case against him moves forward.”

Bitcoin Scoop reports: “Former Celsius CEO Alex Mashinsky faces criminal charges in the US. Judge Rakoff froze his assets & set [his] bond at $40M. Prosecutors need 6-8 weeks to collect evidence. CEL token holders voting on a proposal to sell assets.”

Coin Telegraph had more:

The Justice Department froze accounts at Goldman Sachs and Merrill Lynch under the names of holding companies as well as accounts at First Republic Securities, SoFi Bank and SoFi Securities under Mashinsky’s name.

Previously, Mashinsky explored the idea of full reimbursement for victims of the Celsius collapse on The Deep Dive Podcast, yet since then no such reimbursement or settlement has taken place.

Celsius creditor and victim Tiffany Wong shared an interesting article in which she explained that law firm Kirkland & Ellis billed Celsius nearly $100,000 in a lawsuit to deny Fong’s creditor claims.

CoinDesk provided some background information:

In July, Mashinsky, who also co-founded the lending platform, was arrested under multiple counts including securities fraud and manipulation of the company’s CEL token. He has pleaded not guilty to what his lawyers describe as “baseless” charges.

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