The trial in the case of ex-CEO Celsius was set for September 2024

What happened to Celsius?  Everything you need to know
What happened to Celsius?  Everything you need to know

The trial in the criminal case of fraud of the former CEO of the crypto-lending platform Celsius, Alex Mashinsky, is scheduled for September 17, 2024. Bloomberg reports this.

According to the agency, at a hearing in US District Court, its lawyers hinted at a defense strategy, stating their intention to consider the issue of whether cryptocurrency is a security.

“The law about what a security is is fluid,” said defense attorney Robert Frenchman.

In January 2023, the New York Attorney General’s Office accused Mashinsky of defrauding investors “of billions of dollars.” He was arrested in July.

That same month, the US Department of Justice brought seven more criminal charges against the former head of Celsius and the platform, including securities fraud, manipulation of the price of the CEL token, misleading investors, and conspiracy to defraud customers.

Mashinsky pleaded not guilty to any of the charges. He was later released on bail of $40 million. In September, the court decided to freeze the assets of the former CEO of Celsius while the case was considered.

As a reminder, in June 2022, Celsius suspended withdrawals, exchanges, and transfers between accounts “due to extreme market conditions.”

After filing for bankruptcy, Celsius reported a $1.2 billion hole in its balance sheet. In August, it became known that the company’s liabilities exceeded its assets by $2.85 billion.

In September, Alex Mashinsky left the post of CEO.

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