Former top manager of Celsius Network pleaded guilty
Date: 2023-09-15 Author: Karina Ziganova Categories: IN WORLD
The guilty plea was included in an agreement with prosecutors and included compensation for victims, the agency said. The former top manager will be released on bail until a hearing on December 11.
Authorities brought charges against Cohen-Pavon in July. The ex-head of Celsius Network, Alex Mashinsky, was charged with seven counts. According to investigators, they earned more than $43 million from manipulating CEL.
Bloomberg claimed that police arrested Mashinsky. Although, according to Reuters information, on July 14, the former head of the company came to court in ordinary clothes and without handcuffs. Despite this, he did not admit guilt to any of the charges.
Judge Anna Wang announced that the defendant Mashinsky will be released on bail in the amount of $40 million. The security is provided by his residence in Manhattan and is provided with everything necessary for being in custody.
“Due to changing market conditions,” Celsius suspended withdrawals, exchanges, and transfers between accounts in June 2022.
After filing for bankruptcy, the company reported a $1.2 billion hole in its balance sheet. In August, it became known that its liabilities exceeded its assets by $2.85 billion.
In the autumn decision, the head of the platform, Alex Mashinsky, left the position of CEO. After this, the New York Attorney General's Office brought charges against him for defrauding investors “to the tune of billions of dollars.”
The court decided to freeze Mashinsky's assets until the end of the trial. This happened in September 2023.
