The assets of former Celsius CEO Alex Mashinsky have been
ordered frozen by the court as he faces mounting legal battles related to the
collapse of the crypto lending platform. This development comes in the wake of
his arrest in July and subsequent release on a USD $40 million bond.
Mashinsky, who is also
the Co-Founder of Celsius, has denied any wrongdoing. He is accused of
securities fraud and manipulating the company’s CEL token. The assets allegedly
frozen include corporate bank accounts and valuable property in Austin, Texas.
On August 16, New York
Judge Jed Rakoff issued an order prohibiting financial institutions from
selling assets in various Goldman Sachs bank accounts held in the name of Koala
LLC, a company connected to Mashinsky. However, Mashinsky’s legal team has
argued that the charges against him are baseless.
The broader implication
of this case extends to the challenges that Celsius faced in July 2022
during the crypto market downturn. In May, the creditors of Celsius voted on
whether to
sell assets to a consortium known as Fahrenheit, according to a report by Finance
Magnates. This decision is
part of a broader plan that could potentially allow users to recover their
losses.
In July, Mashinsky pleaded
not guilty to a series
of fraud charges brought against him by the US Department of Justice (DOJ).
This followed a joint effort by multiple regulatory bodies, including the DOJ,
SEC, CFTC
