Celsius co-founder to stand trial in September 2024

Celsius co-founder to stand trial in September 2024

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

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

While the full details of Mashinsky's defense strategy are not available, it appears his lawyers will file a lawsuit based on the ambiguity surrounding the legal status of cryptocurrencies. The law about what is security is fluid, said one lawyer in a statement cited by Bloomberg.

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

For months, case has been developing.

On July 13, 2023, Mashinsky was arrested and charged. On July 14, his assets were frozen in August, but he was released unconditionally on bail for $40 million.

The U.S. Attorney's office for the southern district of New York is pursuing Mashinsky's criminal fraud case, which is being conducted by the Department of Justice. He is charged with civil fraud and a securities case from the New York Attorney General's office and the U.S. Securities and Exchange Commission.

Last year, Celsius collapsed under Mashinsky's management. In June 2022, it stopped withdrawals and entered bankruptcy proceedings in July 2022. The cases are separate from Mashinsky's main criminal case.

Celsius is now trying to recover itself and compensate its customers affected by the company's failure.

At the time of the bankruptcy, the company was said to have owed $4.2 billion to more than 100,000 creditors. The company could earn more than $2 billion as company shares and the stake in the lawsuit against Mashinsky.