Celsius

Bitcoin

Alex Mashinsky, the former CEO of the defunct Celsius Network, has failed to get two fraud charges dismissed from his indictment.&nbsp;
A federal judge in New York ruled against Mashinsky’s motion, which alleged he manipulated the price of <a href="https://crypto.news/tag/celsius/" target="_blank" rel="noopener noreferrer nofollow">Celsius’s</a> cryptocurrency, CEL token, by artificially inflating it, <a href="https://news.bloomberglaw.com/us-law-week/celsius-crypto-founder-loses-bid-to-toss-some-fraud-charges" target="_blank" rel="noopener noreferrer nofollow">per Bloomberg Law</a>.
Mashinsky argued that certain charges were redundant and legally flawed, asserting that his conduct couldn’t simultaneously violate both the Commodity Exchange Act and the Securities Exchange Act.&nbsp;
However, Judge John G. Koeltl <a href="https://www.bloomberglaw.com/public/desktop/document/UnitedStatesvMashinskyNo23cr347JGK2024BL403666SDNYNov082024CourtO?doc_id=X169V2NMG000N" target="_blank" rel="noopener noreferrer nofollow">rejected</a> this, stating that each charge can stand on its own under the law.
One dismissed argument focused on whether Celsius’s deposit program qualified as a commodity contract, offering “rewards” to investors who deposited Bitcoin (<a href="https://crypto.news/price/bitcoin/" target="_blank" rel="noopener noreferrer nofollow">BTC</a>). The judge ruled that this question could be better addressed later in court.
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<h2 class="wp-block-heading" id="celsius-s-2022-collapse">Celsius’s 2022 collapse&nbsp;</h2>
Mashinsky faces charges of wire fraud and market manipulation linked to Celsius’s 2022 collapse.&nbsp;
Celsius was once a prominent crypto lender. However, it collapsed in 2022 after freezing customer withdrawals and filing for bankruptcy amid a <a href="https://crypto.news/celsius-attempts-to-recover-funds-withdrawn-by-creditors-in-pre-bankruptcy-period/" target="_blank" rel="noopener noreferrer nofollow">massive balance sheet deficit</a>.&nbsp;
Prosecutors allege that Mashinsky misled investors and manipulated the company’s native token, CEL, claiming it was safer than it was.&nbsp;
Mashinsky <a rel="noopener noreferrer nofollow" href="https://crypto.news/trial-of-celsius-founder-alex-mashinsky-begins/">faces trial</a> in New York on seven criminal charges, including fraud, which could lead to a 115-year prison sentence if convicted. The trial began in September
His case follows the high-profile conviction of <a href="https://crypto.news/tag/FTX/" target="_blank" rel="noopener noreferrer nofollow">FTX</a> founder Sam Bankman-Fried, who <a href="https://crypto.news/what-awaits-ftx-after-sam-bankman-frieds-25-year-sentence/" target="_blank" rel="noopener noreferrer nofollow">was sentenced</a> to 25 years in prison for similar charges.

Celsius founder Alex Mashinsky loses bid to dismiss charges

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