Defunct Celsius CEO Mashinsky Moves to Sweep Fraud Charges Under Carpet
The former CEO of the Celsius Network, Alex Mashinsky, has filed a motion requesting the dismissal of charges related to commodities fraud and market manipulation. This request was made through his legal team.
Giving reasons for this request, Mashinsky noted in the January 12 filing to the court that the commodities fraud charges were “repugnant” and inconsistent with the unclear position the US government has taken on whether crypto assets should be classified as securities or commodities.
According to him, it is unclear if the US government wants to debate whether the defunct Celsius’ Earn program constituted the purchase of a security and the sale of a commodity simultaneously.
Given the dual position, which could result in a longer legal journey, the legal team insisted that the commodities fraud charges should be dismissed.
Furthermore, Mashinsky’s representatives argued that the court should strike out count six involving market manipulation due to the US government’s lack of a “fair notice,” as the prosecuting team was accused of creating a criminal offense for a civil violation.
The defense team also requested that all mentions of Celsius’ bankruptcy proceedings should be struck off the court’s records.
The former boss of the popular “unbank yourself” blockchain protocol is scheduled for a trial come September 2024.
Mashinsky is also charged by several US authorities, including the Commodity Futures Trading Commission (CFTC), the Federal Trade Commission (FTC), the New York Department of Justice (NYDOJ), and a civil class-action lawsuit initiated by millions of former disgruntled customers.
Alex Mashinsky's crimes are catching up to him. To keep you caught up, here's a compilation of the key docket listings for each of
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