Former Celsius CEO assets frozen by DOJ in August

A now-unsealed August order showed the DOJ targeted multiple Mashinsky-linked bank accounts

article-image

Former Celsius CEO Alex Mashinsky | Kevin McGovern/Shutterstock.com modified by Blockworks

share

Former Celsius CEO Alex Mashinsky’s assets were frozen back in August, according to a now-unsealed order. 

The original order, put forth by the US Department of Justice, was filed on Aug. 16 under seal. 

The filing indicates that DOJ attorneys focused on four Goldman Sachs accounts registered under Koala LLC, as well as an AM Ventures account at Merrill Lynch. In addition, the DOJ froze three accounts held at SoFi Bank, SoFi Securities and First Republic. 

And, finally, the DOJ listed an Austin home purchased by Mashinsky and his wife, Kristine Mashinsky, back in 2021.

The order prohibited “attorneys, agents, and employees, and anyone acting on the behalf” of Mashinsky from doing anything with the listed assets, including selling, transferring or disposing of them. 

In the Sept. 5 filing, US Attorney Damian Williams said that the relevant parties were alerted to the order and therefore the government does “not believe that further sealing is required.”

However, Williams requested that both the application and the affidavit remain sealed because “they reveal confidential information about our ongoing investigation.”

In late July, the court overseeing the government’s case against Mashinsky granted a request by US prosecutors asking for more time to produce evidence. 

Mashinsky was arrested back in July after the DOJ unsealed an indictment against him. Williams — the attorney who wrote to unseal the restraining order — accused Mashinsky of “orchestrating a scheme to defraud customers of Celsius through a series of false claims about the fundamental safety and security of the Celsius platform.”

The DOJ also claimed that Mashinsky participated “in a scheme with Celsius’s Chief Revenue Officer, Roni Cohen-Pavon, to inflate the price of Celsius’s proprietary token, CEL.”

The CFTC, SEC and FTC all targeted the now-bankrupt Celsius. While all three suits had similar claims, the CFTC alleged that both Celsius and Mashinsky misled the public about the financial position of Celsius and defrauded investors.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2024

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Unlocked by Template.png

Research

With the spot ETH ETF approval, the institutions are coming. stETH - given its dominance in marketshare, existing liquid market structures, and highly desirable properties - is poised for institutions.

article-image

Launching cryptocurrencies the old fashioned way may soon make a return

article-image

Kraken and CertiK brought their beef to social media after Kraken said researchers exploited $3 million through a bug

article-image

NVIDIA’s historic run is only deepening the divide between mega-cap tech stocks and the rest of the market.

article-image

EIP-7702 was quickly adopted for the next Ethereum upgrade, but developers haven’t quite locked it down