{"id":81706,"date":"2023-07-14T13:31:53","date_gmt":"2023-07-14T10:31:53","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=81706"},"modified":"2025-09-12T00:37:34","modified_gmt":"2025-09-11T21:37:34","slug":"u-s-authorities-file-seven-charges-against-celsius-and-its-former-ceo","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/u-s-authorities-file-seven-charges-against-celsius-and-its-former-ceo\/","title":{"rendered":"U.S. authorities file seven charges against Celsius and its former CEO"},"content":{"rendered":"

The United States Department of Justice has charged<\/a> Celsius and its former chief executive, Alex Mashinsky, with seven criminal counts.<\/p>\n

According to court documents, Mashinsky is suspected of securities and commodities fraud using electronic communications, manipulating the price of the CEL token, misleading investors, and conspiring to defraud customers.<\/p>\n

Authorities brought similar charges against Celsius’s former Chief Revenue Officer Ron Cohen-Pavon. SEC<\/span> also filed suit against the company for selling unregistered securities.<\/p>\n

According to investigators, Mashinsky and Cohen-Pavon earned more than $43 million from manipulating CEL. Representatives from the SEC added that Celsius engaged in “risky trading practices” and issued unsecured loans.<\/p>\n

The CFTC<\/span> also joined the case. The regulator said it had reached an agreement with Celsius that permanently bars the platform from managing investors’ assets.<\/p>\n

\n

“The message we are sending is fairly simple: if you steal from ordinary investors to line your own pockets, we will hold you to account,” said U.S. Attorney Damian Williams.<\/p>\n<\/blockquote>\n

Earlier, Bloomberg reported<\/a> that law enforcement arrested Mashinsky. However, according to Reuters<\/a>, on July 14 the former head of the company appeared in court in casual clothes and without shackles. He did not plead guilty to any of the charges.<\/p>\n

Judge Anna Wang said Mashinsky would be released on a $40 million bond, secured by his Manhattan residence.<\/p>\n

In June 2022, Celsius halted withdrawals<\/a>, trading and transfers between accounts “due to extreme market conditions”.<\/p>\n

Following the filing<\/a> of bankruptcy at Celsius, the company reported a balance-sheet “hole” of $1.2 billion . In August it emerged that the company\u2019s liabilities exceeded its assets by $2.85 billion<\/a>.<\/p>\n

In September, the platform’s head, Alex Mashinsky left<\/a> the post of chief executive.<\/p>\n

Earlier in 2023, the New York Attorney General’s Office accused<\/a> Celsius’s CEO of deceiving investors by billions.<\/p>\n","protected":false},"excerpt":{"rendered":"

The U.S. Department of Justice has charged Celsius and its former chief executive, Alex Mashinsky, with seven criminal counts.<\/p>\n","protected":false},"author":1,"featured_media":81707,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1348,1162],"class_list":["post-81706","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-celsius-network","tag-court-cases"],"aioseo_notices":[],"amp_enabled":true,"views":"21","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/81706","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=81706"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/81706\/revisions"}],"predecessor-version":[{"id":81708,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/81706\/revisions\/81708"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/81707"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=81706"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=81706"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=81706"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}