- At the time of writing, Celsius was trading at $0.1439, up 13.87% over the past 24 hours.
- Former Celsius CEO Alex Mashinsky was arrested on July 13, 2023.
- Alex Mashinsky faces both criminal and civil charges related to his role at the now-defunct platform.
Celsius (CEL) price has shown gains despite ongoing legal troubles for its former CEO, Alex Mashinsky, who was arrested on July 13, 2023. Shortly after his arrest, a bail amount of $40 million was set for Mashinsky.
Mashinsky is under investigation for actions taken while leading Celsius, which ceased operations after filing for Chapter 11 bankruptcy in July 2022. He resigned as CEO in September following the bankruptcy filing.
Regulatory and legal pressure mounted through 2023. In July, the U.S. Securities and Exchange Commission filed a lawsuit against Celsius Network and Mashinsky, and the Federal Trade Commission later announced a proposed fine of $4.7 billion. These actions compounded the company’s collapse and intensified scrutiny of its former leadership.
In August 2023, U.S. Bitcoin Corp (USBTC), a bitcoin mining company, announced an agreement to manage certain Celsius assets. That development followed Celsius reaching two key settlements in its bankruptcy proceedings, which addressed aspects of customer reimbursements and claims resolution.
The Frozen Assets of Alex Mashinsky
At the request of the U.S. Department of Justice, a federal judge ordered the freezing of several bank accounts and properties tied to Alex Mashinsky. A motion to unseal a related restraining order was filed in the U.S. District Court for the Southern District of New York on Sept. 5.
The Justice Department froze accounts held in the names of Mashinsky’s holding companies at Goldman Sachs and Merrill Lynch, as well as accounts in Mashinsky’s name at First Republic Securities, SoFi Bank, and SoFi Securities. The court injunction also included an Austin, Texas property purchased by Mashinsky and his wife, Kristine, in 2021.
These asset freezes are part of broader efforts by U.S. authorities to preserve funds and property while criminal and civil investigations proceed. As the legal process continues, both Celsius creditors and former customers remain closely watching developments that could affect recoveries and the company’s remaining asset pool.