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Former Celsius CEO Alex Mashinsky asked the court to allow six witnesses in the case related to the bankruptcy of the lending platform to testify. The entrepreneur faces imprisonment for up to 115 years, writes The Block.
In July 2023, the media reported on the detention of Mashinsky.
According to court documents reviewed by insiders, the SEC filed a lawsuit against the company and its ex-head.
The regulator accused Celsius of raising funds through fraudulent and unregistered sales of "cryptocurrency securities," repeatedly deceiving investors about its financial situation, and manipulating the price of its native CEL token.
Prior to that, journalists reported that the CFTC was preparing a lawsuit against the platform. The department's lawyers concluded that the company and Mashinsky misled customers and were engaged in financial activities without a license.
In early 2023, the New York Attorney General's Office accused the CEO of Celsius of defrauding investors "of billions of dollars".
According to the petition, the number of witnesses includes employees of the organization, ranging from the chief revenue officer to the financial director. According to lawyers, many of them live outside the United States.
Mashinsky's defense claims that their client did not want to harm anyone.
"As CEO of Celsius, he relied on information provided to him by an experienced team of professionals," the document says.
During Mashinsky's weekly AMA sessions, the legal and risk teams made edits but didn't report them to him.
As a result, the defendant expected that "any accidental or unintentional inaccuracies in his public statements would be brought to his attention," the lawyers stressed.
Recall that in June 2022, Celsius suspended withdrawals, exchanges, and transfers between accounts "due to extreme market conditions."
After filing for bankruptcy, Celsius reported a $1.2 billion "hole" in its balance sheet. In August, it became known that the company's liabilities exceed its assets by $2.85 billion.
Alex Mashinsky
In July 2023, the media reported on the detention of Mashinsky.
According to court documents reviewed by insiders, the SEC filed a lawsuit against the company and its ex-head.
The regulator accused Celsius of raising funds through fraudulent and unregistered sales of "cryptocurrency securities," repeatedly deceiving investors about its financial situation, and manipulating the price of its native CEL token.
Prior to that, journalists reported that the CFTC was preparing a lawsuit against the platform. The department's lawyers concluded that the company and Mashinsky misled customers and were engaged in financial activities without a license.
In early 2023, the New York Attorney General's Office accused the CEO of Celsius of defrauding investors "of billions of dollars".
According to the petition, the number of witnesses includes employees of the organization, ranging from the chief revenue officer to the financial director. According to lawyers, many of them live outside the United States.
Mashinsky's defense claims that their client did not want to harm anyone.
"As CEO of Celsius, he relied on information provided to him by an experienced team of professionals," the document says.
During Mashinsky's weekly AMA sessions, the legal and risk teams made edits but didn't report them to him.
As a result, the defendant expected that "any accidental or unintentional inaccuracies in his public statements would be brought to his attention," the lawyers stressed.
Recall that in June 2022, Celsius suspended withdrawals, exchanges, and transfers between accounts "due to extreme market conditions."
After filing for bankruptcy, Celsius reported a $1.2 billion "hole" in its balance sheet. In August, it became known that the company's liabilities exceed its assets by $2.85 billion.
Alex Mashinsky
