US Judge Orders Former Celsius CEO Alex Mashinsky to Appear in Court Next Month

Alex Mashinsky, the former CEO of crypto platform Celsius, has been ordered to appear in a New York courtroom for the first time in months for oral arguments related to his motion to dismiss charges.

Earlier this year, Mashinsky’s legal team submitted motions to dismiss charges of commodities fraud and market manipulation. He was arrested and charged in July 2023 with seven felony counts. Prosecutors accused him and former Chief Revenue Officer Roni Cohen-Pavon of illicitly manipulating the price of Celsius’s native token, CEL.

Mashinsky is also accused of intentionally misleading Celsius users about the nature of their investments, from which he allegedly earned nearly $42 million in profits from sales.

Former Celsius CEO to Appear in Court 

In a recent filing with the U.S. District Court for the Southern District of New York, Judge John Koeltl instructed Mashinsky and the prosecutors to appear in court on November 13, 2024, to argue the motion to dismiss charges of commodities fraud and market manipulation against the former Celsius CEO. 

In addition to the hearing, Judge Koeltl ordered the parties to attend a pretrial conference on January 16. Mashinsky’s trial is scheduled for January 28, 2025

Mashinsky, who resigned as the CEO of Celsius in September 2022, has pleaded not guilty to all charges against him. 

The upcoming court hearing is likely related to a September filing from Mashinsky, urging to preserve the testimony of six material witnesses who reside outside the US, including Cohen-Pavon.

Mashinsky’s lawyers claimed that five of the six witnesses they planned to call either ignored or disregarded his explicit instructions to generate revenue by consistently selling CEL into the market. Instead, they purchased excess CEL on the FTX exchange throughout 2021.

This case highlights the growing regulatory scrutiny of cryptocurrency platforms. As digital assets become more mainstream, regulators are intensifying efforts to ensure transparency and protect investors from fraudulent activities. Celsius filed for bankruptcy in 2022 and has begun repaying creditors.