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Celsius Alex Mashinsky Pleads Not Guilty, Granted Bail

Alex Mashinsky, the founder and former CEO of Celsius, pleaded not guilty to charges of misleading customers and artificially inflating the CEL token shortly after being arrested on Thursday. Following this, he was released on bail by a US District Judge on a bond of $40 million.

According to a court document filed on Thursday, the personal recognizance bond for Alex Mashinsky is secured by his Manhattan residence, as well as the signatures of his wife and another individual.

Benjamin Alee and Jonathan Ohring are the attorneys representing Alex Mashinsky, and in a statement, Ohring mentioned that Mashinsky is eager to defend himself in court against what he believes are unfounded charges.

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Following attorney Benjamin Alee’s statement of Mashinsky’s not-guilty plea, Mashinsky left the court without commenting. When the magistrate judge asked if the plea was indeed not guilty, Mashinsky confirmed that it was.

Restrictions Imposed On Mashinsky

As part of the bail agreement, Mashinsky will face restrictions that include a ban on travel and opening new bank or cryptocurrency accounts. For now, Mashinsky’s travel is restricted to the Eastern and Southern Districts of New York.

Furthermore, according to the agreement, Mashinsky’s wife will be required to sign the bond, while the identity of the second co-signee remains undisclosed. The bond will also be secured by a financial claim on Mashinsky’s bank account and his residence in New York City.

The arrest and bail arrangement of Alex Mashinsky were part of a coordinated effort by several entities, including the Department of Justice, the Federal Trade Commission, and federal securities and commodities regulators.

On the same day of the arrest, the Commodity Futures Trading Commission (CFTC), Federal Trade Commission (FTC), and Securities and Exchange Commission (SEC) filed lawsuits against Celsius and Alex Mashinsky. In addition, Mashinsky was charged by the Department of Justice with seven counts, including securities and wire fraud.

Promotional Strategies Of Celsius Exposed In Indictment

Celsius, founded in 2017, filed for bankruptcy in July 2022. According to prosecutors, from 2018 to 2022, Mashinsky misled investors about fundamental aspects of Celsius’ operations.

The indictment against Mashinsky states that between 2018 and 2022, he presented Celsius to customers as a secure platform for depositing their cryptocurrency assets and earning interest, akin to a modern-day bank.

However, prosecutors allege that Mashinsky actually operated Celsius as a high-risk investment fund, misleading customers and exposing them to a risky business model.

In addition, the indictment claims that Mashinsky utilized his Twitter account, media interviews, and Celsius’s website to promote the platform.

Regulators assert that despite experiencing significant losses and facing pressure from withdrawals, Mashinsky and Celsius made false claims regarding the platform’s financial stability, leading to an exponential increase in its customer base, largely composed of retail investors.

Apart from the recent charges, New York Attorney General Letitia James had previously filed a lawsuit against Alex Mashinsky in state court, alleging that he had deceived thousands of investors, including 26,000 New Yorkers.

The total crypto market cap was at $1.21 trillion on the one-day chart | Source: TradingView

Featured image from The New York Times, chart from

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