Former CEO of Celsius Network, Alex Mashinsky, is scheduled to be released on bail on Thursday, July 13, on arrest and fraud charges.
Mashinsky has agreed to a $40 million personal authorization bond, which his wife will sign by Friday, July 14, and another financially responsible person (yet identified) by July 21. not signed) must be signed.
Release on promise
After his arrest, a U.S. District Judge granted Mr. Mashinsky bail. The agreement requires Mashinsky to submit travel documents to authorities and limits travel to New York City. moreover, The document says Former CEOs of cryptocurrency lenders are prohibited from opening new financial, business or personal bank accounts, lines of credit or cryptocurrency accounts without pre-trial service approval.
The security deposit is signed only by the wife, but the identity of the co-signer is not disclosed. Mashinsky’s New York City residence and bank account are collateral to secure the security deposit.
The form of Mr. Mashinsky’s bail, known in court as a bail bond, is an arrangement that allows the defendant to be released from custody without posting bail. Instead, they are released on their own commitment, or personal perception, to appear in court for all hearings and legal proceedings related to their case.
The former CEO of Celcius has pleaded not guilty to all charges.
Mashinsky’s defense team strongly denied the allegations and said they would defend themselves vigorously in court. He currently represents Yankwit LLP, a New York-based trial and litigation firm.
mislead investors
Cryptocurrency consortium Fahrenheit recently acquired its assets after Celsius Network declared bankruptcy in July 2022.
And on Thursday, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Alex Mashinsky and Celsius, alleging that they illegally raised billions of dollars by selling unregistered cryptocurrency securities. The SEC further alleges that Masinski and the New Jersey-based company misled investors about the private company’s financial position.
The same day, the Federal Trade Commission (FTC) accused the lending platform of deceiving consumers with limited knowledge of cryptocurrencies and encouraging them to deposit their assets with Celsius. Following their precedent, the Commodity Futures Trading Commission (CFTC) has accused Mashinsky and Celsius of fraud and material misrepresentation related to operating a cryptocurrency lending platform.