Ex-Celsius CEO Alex Mashinskys bail set at $40 million

• The former CEO of Celsius was arrested on Thursday.
• Celsius filed for bankruptcy in 2022, along with other major cryptocurrency financiers.
• Mr Mashinsky’s bail will require the signatures of two financially viable individuals.

Alex Mashinsky, founder and former CEO of bankrupt cryptocurrency bank Celsius Network, has pleaded not guilty to fraud charges brought by the U.S. Department of Justice.

Mashinsky was arrested on Thursday and the Justice Department charged him with securities fraud, wire fraud and commodity fraud. The former Celsius CEO is also facing charges of manipulating the price of the cryptocurrency platform’s native asset, CEL.

Mashinsky pleads not guilty

The Justice Department’s arrest and arraignment of the former Celsius CEO comes after the SEC also indicted Mr. Maschinkey. The Commodity Futures Trading Commission (CFTC) has also filed a complaint against him.

Today, we filed charges against Mr. Celsias and Mr. Alex Mashinski for fraud and for offering and selling unregistered securities.
https://t.co/BoulI5RzVh pic.twitter.com/E9ygRtwC7g

U.S. Securities and Exchange Commission (@SECGov) July 13, 2023

Mascinxy pleaded not guilty to the Justice Department charges and was granted bail of $40 million. The personal authorization bond must be signed by two of her who are considered financially responsible.

According to court documents released on July 14, the ex-cryptocurrency figure’s wife is one of two FRPs, and the second FRP needs to add his signature today. A key date in this development is July 21, which the court has set as the deadline for the second FRP.

The former boss will be released without posting $40 million in bail, but his bank account and New York residence are still subject to claims. Mashinsky has also been ordered to submit travel documents to authorities and is barred from opening bank or cryptocurrency accounts without pre-trial service approval.

Mashinsky is another high-profile cryptocurrency figure to be arrested following bankruptcies and bankruptcies that hit cryptocurrency companies in 2022. Former FTX CEO Sam Bankman-Fried and Terra founder Do Kwon are among them.