The trial of Alex Mashinsky, founder and former CEO of failed Celsius Network, is not happening this week, despite a handful of media reports to the contrary.
He faces fraud charges relating to the collapse of the crypto lender, which purported to hold $25 billion in assets at its peak, according to the Department of Justice.
Mashinsky’s trial for fraud and market manipulation over the failure of Celsius was initially scheduled to go ahead in Manhattan’s Southern District Court this week.
However, in April, Judge John G. Koeltl adjourned the trial to January 28 next year, according to a court filing.
The trial does not appear on the court’s calendar for this week.
DL News confirmed in a call with the court that the following dates of interest are scheduled:
December 11: Sentencing of former Celsius executive Roni Cohen-Pavon, also a defendant in this case. Cohen-Pavon pleaded guilty to fraud and market manipulation in 2023.
January 16, 2025: Final pretrial conference for Mashinsky.
January 28, 2025: Jury trial of Mashinsky.
Life sentence
The stakes are high for Mashinsky, his lawyers say. Prosecutors may seek a 115-year prison term for the Russian-born Celsius founder.
They allege that Mashinsky lied to Celsius’s customers to induce them to lend their crypto to the platform, and that he artificially inflated the price of Celsius’s associated token.
His defence team says it will show that Mashinsky did not intend to defraud or harm investors, and his colleagues are to blame.
On Monday, Mashinky asked the court to allow Cohen-Pavon and five others who were on the company’s management team members to testify at his trial. Their evidence is material to the case, and it would be unjust to leave it out, the lawyers said.
Celsius Collapse
Mashinsky and Daniel Leon founded lender Celsius in 2017. Mashinsky promised as much as 18% returns on crypto investments, and billed his platform as “better than a bank.”
The company saw astounding growth. However, in 2022, Terra/Luna collapsed, and the resulting volatility hit Celsius. The company paused withdrawals in June 2022, and then declared bankruptcy — alerting officials.
In the fallout, Mashinsky was charged with fraud and market manipulation.
Reach out to the author at joanna@dlnews.com.