- Court records show that Mashinsky entered a not-guilty plea to seven charges.
- Mashinsky’s NY City residence and bank account will serve as collateral for the bond.
After his arrest on Thursday on allegations of fraud, a U.S. District Judge set bail for Alex Mashinsky, founder and former CEO of insolvent crypto lender Celsius, at $40 million. Court records show that Mashinsky entered a not-guilty plea to seven charges. Including deceiving investors and manipulating the price of his CEL token.
On Thursday, the Department of Justice, the Federal Trade Commission, and federal securities and commodities agencies all indicated that they would be taking action against Mashinsky and other officials.
Certain Restrictions
As part of the agreement, Mashinsky is prohibited from leaving the country. And also from opening any new financial or cryptocurrency accounts. According to court records, his wife will be the only signatory on the bond. On the other hand, the identity of the other co-signatory is unknown at this time. His New York City residence and bank account will serve as collateral for the bond.
Moreover, Mashinsky’s attorneys stated that their client refutes allegations against him. And will go all out to defend himself in court against the charges.
According to the U.S. Department of Justice (DOJ), on Thursday, Alex Mashinsky was detained in New York as part of an investigation into the failure of bankrupt crypto lender Celsius. In a seven-count indictment, the DOJ accuses Mashinsky and others of securities fraud, commodities fraud, wire fraud, and conspiracy related to the manipulation of the price of Celsius’ token CEL.
Furthermore, in July 2022, the lending platform declared bankruptcy, and the cryptocurrency consortium Fahrenheit recently secured a deal to buy its assets. For allegedly misrepresenting investors about the firm’s health prior to its bankruptcy filing, New York Attorney General Letitia James filed a lawsuit against Mashinsky in January.
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Source: https://thenewscrypto.com/founder-and-former-ceo-of-celsius-granted-bail-on-40m-bond/