Alex Mashinsky, co-founder of CEL, to stand trial in September 2024

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Alex Mashinsky, co-founder of CEL, to stand trial in September 2024

According to a Bloomberg report, Alex Mashinsky, the co-founder and former CEO of Celsius, will stand trial in September 2024.

This statement indicates that Mashinsky's trial has been scheduled for Sept. 17, 2024. Mashinsky has been charged with securities and commodities fraud, wire fraud, and conspiracy to manipulate the value of the company's native crypto token, CEL.

While Mashinsky's defense strategy is not known, it appears his attorneys will consider a suit based on the ambiguity surrounding the legal status of cryptocurrencies. In an in-court statement, Bloomberg said that the law about what is a security is fluid.

The trial date was set on October 3 at a hearing. Although the public court docket of Mashinsky's suit has not yet reflected the recent changes, records confirm that new filings were submitted today.

For months, Case has been developing.

On July 13th, 2023, Mashinsky was arrested and charged. The suitor was released on bail on July 14 for $40 million, though his assets were frozen in August.

The U.S. Attorney's Office for the Southern District of New York is pursuing Mashinsky's criminal fraud case, which is being handled by the Department of Justice. He will stand in a civil fraud case in the New York Attorney General's office and a securities case from the SEC.

Last year, Celsius itself collapsed under Mashinsky's management. In June 2022, the government halted withdrawals and entered bankruptcy proceedings in July 2022. The bankruptcy proceeding is separate from the main criminal case involving Mashinsky.

The company is presently reestablishing itself and providing compensation to its customers who were adversely affected by the company's failure.

At the time of the bankruptcy, the company was said to be owed $4.2 billion to more than 100,000 creditors. Recent reports suggest that the company may pay about $2 billion in crypto plus as shares and stake in a lawsuit against Mashinsky.