Former Celsius CEO Alex Mashinsky will show up in court on November 13 to contest multiple allegations against him, including market manipulation and commodities fraud. Judge John Koeltl of the U.S. District Court for the Southern District of New York will preside over the hearing on Mashinsky’s move to dismiss these accusations.
The allegations date back to July 2023, when authorities detained Mashinsky on charges of manipulating the pricing of Celsius’s native token, CEL, and misleading consumers about the profitability and safety of their investments. Alleging that Mashinsky and former Chief Revenue Officer Roni Cohen-Pavon participated in dishonest behavior to inflate the value of CEL, the indictment lists seven felonies.
Mashinsky, who has pleaded not guilty to all allegations, has not appeared in court since February. Seeking to have some charges dropped—especially those pertaining to fraud and market manipulation—his legal team filed the application in January. Preserving testimony from important witnesses—many of whom live outside the United States—including Cohen-Pavon—will also be a major emphasis of the forthcoming court session.
Following a pre-trial meeting slated for January 16, 2025, the former Celsius CEO’s trial is due to start on January 28, 2025. The investigation also linked Cohen-Pavon, who has since changed his plea to guilty and is awaiting a December 11 sentence.
Following a market crash in July 2022, well-known cryptocurrency lender Celsius filed for bankruptcy. Although Mashinsky is running legal fights, including civil proceedings initiated by the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission, the business has been trying to pay back its debtors.
Given the growing attention to the bitcoin sector, Mashinsky’s case is likely to have major consequences for the control of digital assets and the future of crypto lending platforms.
