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DOJ Freezes Assets of Former Celsius CEO Alex Mashinsky Amid Fraud Charges
The Department of Justice (DOJ) has taken action to freeze the assets of former Celsius Network CEO, Alex Mashinsky, who is facing seven criminal charges related to cryptocurrency fraud.
The US Department of Justice Has Frozen The Assets Of Former Celsius CEO Alex Mashinsky
The Department of Justice (DOJ) has taken action to freeze the assets of former Celsius Network CEO, Alex Mashinsky, who is facing seven criminal charges related to cryptocurrency fraud.
A recent court order mandates the freezing of Mashinsky’s bank accounts across various financial institutions, including Goldman Sachs, Merrill Lynch, First Republic Securities, SoFi Bank, and SoFi Securities. Additionally, the order extends to a property located in Texas, co-owned by Mashinsky and his wife, Kristine.
Celsius Network, once a prominent cryptocurrency lender, faced financial difficulties and filed for bankruptcy in 2022, revealing substantial liabilities exceeding its assets by $1.2 billion.
In July, the Securities and Exchange Commission (SEC) initiated a lawsuit against Celsius and Mashinsky, accusing them of conducting fraudulent and unregistered sales of “crypto asset securities,” making false statements to investors regarding Celsius’s financial health, and manipulating the price of CEL, the company’s native token.
Multiple regulatory agencies, including the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and the Federal Trade Commission (FTC), have also filed civil charges against Celsius Network.
Mashinsky posted a $40 million bond in July and pleaded not guilty to the criminal charges.
