July 21, 2024
Former Celsius Network CEO Alex Mashinsky Faces Asset Freeze Amidst Seven Felony Charges
Policy & Regulation

Former Celsius Network CEO Alex Mashinsky Faces Asset Freeze Amidst Seven Felony Charges

Alex Mashinsky, the former CEO of Celsius Network and a suspected cryptocurrency fraud artist, was smacked by the feds with seven felony accusations in July. They now want to seize his assets.

According to a court order submitted yesterday, the Department of Justice has mandated the freezing of Mashinksy’s various bank accounts.

According to the filing, no funds are permitted to leave Goldman Sachs, Merrill Lynch, First Republic Securities, SoFi Bank, or SoFi Securities bank accounts.

It also refers to a house in Texas that Mashinksy and his wife, Kristine, share.

Federal prosecutors accused Mashinsky of fraud in July, claiming that he deceived investors and that his company used “risky trading practices.” They filed seven separate criminal complaints against him.

Additionally, Celsius was charged with a variety of civil charges by the Securities and Exchange Commission, the Commodity Futures Trading Commission, and the Federal Trade Commission.

According to the regulators, the crypto lender marketed unregistered securities and regularly misled users about how secure the network was. Additionally, they assert that the business “falsely promoted Celsius as a safe alternative to banking—even though it was anything but.”

One of the many cryptocurrency businesses that failed last year was Celsius. Although it advertised itself as a “safe” lender and promised investors enormous profits, it ceased allowing customer withdrawals in June of last year due to “extreme market conditions.”

A month later, it submitted bankruptcy documents demonstrating that its obligations exceeded its total assets by $1.2 billion.

The feds claim that Mashinsky cashed out personally and subsequently earned $42 million by scamming clients while telling investors it was safe to continue using the site.

Image: Freepik

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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