According to Cointelegraph: A US federal judge has ordered the freezing of certain bank accounts and property connected to former Celsius CEO Alex Mashinsky, following a motion from the United States Justice Department. The decision is based on criminal and civil charges against Mashinsky arising from his involvement with the now-defunct lending platform.
As per a September 5 filing, the judge approved a request to unseal a restraining order related to Mashinsky's assets, enabling the Justice Department to freeze accounts at Goldman Sachs, Merrill Lynch, First Republic Securities, SoFi Bank, and SoFi Securities, as well as Mashinsky's property in Austin, Texas. The house, which Mashinsky had purchased with his wife in 2021, had been listed for sale around the time Celsius filed for bankruptcy in July 2022.
Mashinsky, who co-founded Celsius in 2017, stepped down as CEO in September 2022, citing his role as an "increasing distraction" as users faced difficult financial circumstances. In July, US authorities arrested him for allegedly misleading investors and defrauding users out of billions of dollars. Mashinsky pleaded not guilty to all charges and was released on a $40-million bail, subject to restrictions.
Both the US Commodity Futures Trading Commission and Securities and Exchange Commission filed civil cases against Mashinsky, announcing settlements with Celsius amidst the former CEO's ongoing legal battles. Additionally, the Federal Trade Commission issued $4.7 billion in fines to Celsius, suspending the judgment to allow the platform to utilize the assets in their bankruptcy proceedings.
