Celsius CEO’s Assets Seized Amid Fraud Charges
Recent court documents have unveiled that authorities have taken possession of assets, including a residence, from Alex Mashinsky, the former CEO of the now-bankrupt crypto lending firm Celsius.
According to an unsealed court order, the Department of Justice (DOJ) has seized several bank accounts linked to Mashinksy and a residence in Texas. The frozen accounts include those with Goldman Sachs, Merrill Lynch, First Republic, and SoFi. Additionally, a property located in Austin, Texas, purchased in July 2021, has been seized.
Although the court order was originally issued on August 16th, it remained under seal until August 31st to prevent third-party interference.
Mashinksy and Celsius’ chief revenue officer, Roni Cohen-Pavon, were initially arrested and charged with multiple counts of fraud in July. They were accused of orchestrating schemes involving CEL, the native asset of Celsius Network.
The allegations include misleading customers by portraying Celsius as a “modern-day bank” where investors could earn interest on their deposited digital assets. However, it is alleged that they engaged in risky, leveraged trades with the funds instead of following this approach.
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Furthermore, Mashinksy and Cohen-Pavon face accusations of manipulating the price of CEL, resulting in traders buying it at an inflated price, which ultimately benefitted them financially.
The charges against the two individuals encompass wire fraud, securities fraud, commodities fraud, and market manipulation. If convicted, they could potentially face lengthy prison sentences.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
