Alex Mashinsky, the founder and former CEO of Celsius Network, pleaded not guilty to fraud charges on Thursday, July 13, 2023. The charges allege that he misled customers about the company’s financial health and artificially inflated the value of its propriety crypto token.
Mashinsky was released on a $40 million bond secured by his Manhattan residence. He is scheduled to appear in court again on September 12, 2023.
The charges against Mashinsky are the latest blow to the cryptocurrency industry, which has been reeling from a series of collapses in recent months. Celsius Network was one of the largest cryptocurrency lenders, with over $10 billion in assets under management. However, the company was forced to suspend withdrawals and transfers in June 2022 after it experienced a liquidity crisis.
The charges against Mashinsky are serious, and if he is convicted, he could face up to 20 years in prison. However, he has pleaded not guilty, and the case is still ongoing.
Mashinsky has denied the allegations, and his lawyers have said that he will fight the charges. The case is still ongoing, and it is not clear when it will go to trial.
The charges against Mashinsky are a reminder of the risks associated with investing in cryptocurrencies. The industry is still relatively new and unregulated, and there have been a number of high-profile scams in recent years. Investors should do their research before investing in any cryptocurrency project.
