Attorneys with the United States Department of Justice have been granted additional time for discovery in the case against former Celsius CEO Alex Mashinsky, allowing his defense team more time to review related documents.
In an order dated July 25, U.S. District Judge John Koeltl excluded the period from July 25 to Oct. 3 from Speedy Trial Act calculations. This law mandates a federal criminal trial to begin within 70 days of an indictment being filed. The judge referenced the “volume of discovery” and the “complexity of the case” against Mashinsky as reasons for the extension.
The law obliges prosecutors to disclose any information favorable to an accused that is “material either to guilt or to punishment.” A conference scheduled for Oct. 3 will bring Mashinsky to a New York courtroom, just a day after the commencement of the trial against former FTX CEO Sam Bankman-Fried, who is charged in the same district.
Celsius filed for Chapter 11 bankruptcy in July 2022, only a few weeks after the platform announced it would pause all withdrawals without providing a definite timeline for their return. Mashinsky resigned as CEO in September 2022.
Mashinsky was charged and arrested on July 13 on allegations of securities fraud, commodities fraud, and wire fraud connected to allegedly defrauding customers and misleading them about certain information on Celsius’ business practices. Mashinsky has pleaded not guilty to all charges and has been released on a $40 million bond.
No trial date has been set for Mashinsky’s criminal case. The fraud charges coincide with a complaint filed by the Commodity Futures Trading Commission against Mashinsky. The Securities and Exchange Commission has also lodged its own civil suit against the former CEO, while the Federal Trade Commission announced it had imposed a $4.7 billion fine on Celsius in July.
Get $200 Free Bitcoins every hour! No Deposit No Credit Card required. Sign Up