Founder of Bankrupt Crypto Lender Celsius, Alex Mashinsky, Pleads Not Guilty to Fraud and Manipulation Charges, $40 Million Bail Set

Founder of Bankrupt Crypto Lender Celsius, Alex Mashinsky, Pleads Not Guilty to Fraud and Manipulation Charges, $40 Million Bail Set

According to court documents, Alex Mashinsky, the founder of the now-bankrupt crypto lending company Celsius, has entered a plea of not guilty to charges that include fraud and manipulation of the CEL token.

Previously, Mashinsky faced seven counts related to allegations of deceiving investors and manipulating the price of CEL tokens. He vehemently denied these accusations.

A US District Judge has set bail for the founder and former CEO of Celsius at $40 million, with Mashinsky’s wife designated as one of the signatories for the bail pledge. The identity of the other co-signer remains undisclosed, as per court documents. The bail amount has been secured against Mashinsky’s New York City home and bank account.

Under the conditions of his release, Mashinsky will be subject to travel restrictions and will be prohibited from opening new bank accounts or engaging in cryptocurrency-related activities.

On the evening of July 13, the United States Securities and Exchange Commission (SEC) filed a lawsuit against Celsius Network. The company had experienced financial collapse in July 2022 during a liquidity crisis. Furthermore, Alex Mashinsky was arrested by US authorities and faced legal action from the New York state government.

Following the SEC’s lawsuit, the US Department of Justice (DOJ), the Futures Trading Commission (CFTC), and the Federal Trade Commission (FTC) also filed lawsuits or indictments against Celsius.

Celsius was one of three major cryptocurrency companies that collapsed in mid-2022, along with Three Arrows Capital and the crypto investment app Voyager. The company had revealed it had over 100,000 creditors, with remaining assets totaling $4.3 billion and liabilities amounting to $5.5 billion.