Ex-Celsius CEO Alex Mashinsky Faces $40 Million Bail Set

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Alex Mashinsky, the founder and former CEO of bankrupt crypto lender Celsius Network, recently pleaded not guilty to fraud charges filed against him by the US Department of Justice. On Thursday, the DOJ charged him with securities fraud, wire fraud, and commodities fraud, as well as manipulating the price of the crypto platform’s native asset CEL.

The SEC and Commodity Futures Trading Commission (CFTC) have also filed complaints against him. Mashinsky was granted a $40 million bail, which must be signed by two financially responsible persons. His wife is one of two FRPs, while the deadline for the second FRP is July 21.

The former Celsius boss will be released without paying the $40 million bond, but his bank account and residence in New York are subject to a claim. Furthermore, he is not allowed to open bank or cryptocurrency accounts without approval from Pretrial Services.

With Mashinsky’s arrest, he joins other high-profile crypto figures such as former FTX CEO Sam Bankman-Fried and Terra founder Do Kwon who have been arrested following the collapses and bankruptcies that hit crypto companies in 2022.

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