Former Celsius CEO Alex Mashinsky is seeking testimony from six former company employees as he prepares for a trial on criminal charges. He faces up to 115 years in prison.
Arrest and Charges
Alex Mashinsky was arrested in 2022 for allegations of defrauding customers and misleading them about the financial health of Celsius. In a recent memorandum, lawyers for the former CEO requested the New York District Court to allow testimony by key figures, including Celsius' former CFO and CRO, some of whom reside outside the U.S.
Celsius Bankruptcy and SEC Lawsuit
The now-bankrupt Celsius, which declared bankruptcy in 2022 and ceased operations earlier this year, has been under regulatory scrutiny. In 2023, the SEC sued Celsius and Mashinsky for raising billions through the sale of fraudulent, unregistered cryptocurrencies. The SEC also alleged that Mashinsky lied about the company's financial condition to investors and manipulated the price of the CEL token. Prosecutors also assert that Mashinsky misled about the firm's stability before it went bankrupt, in a scenario reminiscent of other massive crypto companies like FTX.
Potential Witnesses
One of the six proposed witnesses is former Celsius CRO Roni Cohen-Pavon, who pled guilty to criminal charges last year. In Mashinsky's defense, attorneys argue that Cohen-Pavon disregarded the CEO's instructions and furthered the manipulation of CEL prices.
Alex Mashinsky continues to prepare for his upcoming trial, with his attorneys seeking permission to question witnesses. Mashinsky maintains that he did not intentionally harm anyone.
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