The former CEO of Celsius is likely to face court on seven charges scheduled for September 2024.

Lawyers representing Alex Mashinsky, the former CEO of Celsius, have filed a motion in federal court to dismiss two charges related to commodity fraud and market manipulation.

In a lawsuit filed on January 12th in the Southern District of New York, Mashinsky's legal team requested the dismissal of two counts in the criminal charges that are likely to be considered by the court in September 2024. According to the lawsuit, the second charge of commodity fraud is deemed "inconsistent" and "incompatible" with the first charge of securities fraud based on the government's allegations regarding cryptocurrency operations.

Mashinsky's lawyers also argued that the court should reject the sixth charge of market manipulation "due to lack of fair notice," claiming that the U.S. government invented a criminal charge based on a civil violation. In addition to appealing to the judge to drop two of the seven criminal charges against the former CEO, the legal team also requested the exclusion of information related to Celsius's bankruptcy from the case:

Celsius was one of the many crypto companies that filed for bankruptcy in the United States in 2022 due to the market downturn, including BlockFi and FTX. Mashinsky stepped down as CEO in September 2022, and in July 2023, he was charged with seven criminal counts, including securities fraud, wire fraud, and conspiracy to commit fraud.

As of the time of writing this information, Mashinsky remains free on bail of $40 million. Former FTX CEO, Sam Bankman-Fried, also a prominent figure in the crypto world, was convicted of seven criminal charges in November 2023 and awaits sentencing. Former CEO of Binance, Changpeng Zhao, admitted guilt to one of the charges as part of an agreement with U.S. authorities. He is prohibited from leaving the United States until sentencing in February.