May 23, 2024
Policy & Regulation

DOJ Requests Extension for Evidence Submission in Case Against Celsius’s Ex-CEO

The United States Department of Justice (DOJ) has sought an extension of six to eight weeks from a federal judge to compile crucial evidence in its case against Alex Mashinsky, the founder and former CEO of crypto lending platform Celsius. The case revolves around multiple charges, including securities fraud, commodities fraud, wire fraud, and conspiracy to manipulate the price of CEL, Celsius’ native token.

Mashinsky, who was taken into custody earlier this month, has maintained his innocence and pleaded not guilty to all charges. The DOJ’s legal team asserts that they require additional time to thoroughly process an extensive collection of corporate records and communications related to Celsius. This includes over 1,200 videos of Mashinsky’s and other Celsius executives’ “ask-me-anything” sessions, some of which span over an hour.

In the courtroom, Mashinsky was represented by his attorney, Marc Mukasey. The next conference date, set by Judge John G. Koeltl of the District Court for the Southern District of New York, is scheduled for October 3. However, the trial date itself is yet to be determined. Notably, Judge Koeltl had previously granted Mashinsky’s legal team an extension to fulfill the conditions of his substantial $40 million bail.

It’s worth mentioning that Celsius faced financial hardship, filing for bankruptcy the previous year. The circumstances surrounding the company’s bankruptcy may have further implications on the current legal proceedings.

The case has garnered significant attention within the crypto community, given Celsius’ prominence in the decentralized finance space. As events unfold, both prosecutors and the defense will be closely watched by industry experts and investors alike.

As the DOJ prepares its case against Alex Mashinsky, the founder’s future and the fate of Celsius remain uncertain. The additional time requested by the DOJ will likely be instrumental in forming a comprehensive case against the defendant. The courtroom drama is set to continue, and the outcome of the trial could have far-reaching consequences for the world of cryptocurrencies and the broader financial landscape.

Image: Wikimedia

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