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Former Celsius CEO’s fate to be determined after Oct. 3

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TL;DR

  • Attorneys from the United States Department of Justice have been granted additional time for discovery in the case involving former Celsius CEO, between July 25 and Oct. 3 from the Speedy Trial Act calculations.
  • The former CEO of Celsius faces charges of securities fraud, commodities fraud, and wire fraud, which allegedly involve defrauding customers and providing misleading information about Celsius’ business practices. 

Attorneys from the United States Department of Justice have been granted additional time for discovery in the case involving former Celsius CEO, Alex Mashinsky. U.S. District Judge John Koeltl issued an order on July 25, allowing the exclusion of the period between July 25 and Oct. 3 from the Speedy Trial Act calculations. This Act requires a federal criminal trial to commence within 70 days of an indictment being filed. The decision to extend the timeline was based on the complexity of the case and the significant volume of discovery materials involved.

Judge Koeltl stated that the “ends of justice” were better served by granting this continuance, outweighing the interests of the defendant and the public in a speedy trial. The law obligates prosecutors to disclose information that is favorable to the accused and is considered material to the charges against Mashinsky, including matters related to guilt or punishment.

Celsius former CEO charges

The former CEO of Celsius faces charges of securities fraud, commodities fraud, and wire fraud, which allegedly involve defrauding customers and providing misleading information about Celsius’ business practices. Despite the charges, Alex Mashinsky has maintained his plea of not guilty to all counts and has been released on a substantial $40 million bond.

The trial against Mashinsky is set to begin after October 3 and will take place in the Southern District of New York. Notably, this date aligns closely with the start of the trial against former FTX CEO, Sam Bankman-Fried, who is also facing charges in the same district.

The legal troubles for Celsius do not end with the criminal case against Mashinsky. The Commodity Futures Trading Commission has filed a complaint against him, and the Securities and Exchange Commission has initiated its civil suit against the former CEO. Additionally, the Federal Trade Commission has issued a significant $4.7 billion fine to Celsius in July.

Celsius itself experienced financial difficulties, as evidenced by its Chapter 11 bankruptcy filing in July 2022. The company had previously announced a temporary halt to all withdrawals without providing a clear timeline for their resumption. Subsequently, Mashinsky resigned from his position as CEO in September 2022.

As of now, the trial date for the former Celsius CEO’s criminal case has not been scheduled. The multiple legal actions against him and the company have undoubtedly complicated the situation, and the court is taking the necessary time to ensure a fair and thorough examination of the allegations and evidence presented.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Lacton Muriuki

Lacton is an experienced journalist specializing in blockchain-based technologies, including NFTs and cryptocurrency. He dabbles in daily crypto news rich with well-researched stats. He adds aesthetic appeal, adding a human face to technology.

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