Judge gives DOJ until October to ‘make discovery’ in Mashinsky case

The judge, in new court filings, said the Oct. 3 conference allows “adequate time for the Government to make discovery”

article-image

Web Summit, CC BY 2.0, via Wikimedia Commons, modified by Blockworks

share

US prosecutors have asked the court overseeing the Department of Justice’s case against former Celsius CEO Alex Mashinsky for additional time to produce evidence. 

In court documents filed Tuesday, Judge John G. Koeltl said the next conference in the case will be held on Oct. 3 “to assure the effective assistance of counsel and to allow adequate time for the Government to make discovery and for the defense to review it, and because of the volume of discovery and the complexity of the case.”

He also ruled that the court “prospectively excludes the time from today, July 25, 2023, until October 3, 2023, from Speedy Trial calculations.” 

Generally, Speedy Trial calculations ensure that a trial begins 70 days “from the date the information or indictment was filed, or from the date the defendant appears before an officer of the court in which the charge is pending, whichever is later.”

A date for the trial has yet to be set.

On Monday, the judge granted Mashinsky an additional week because his team claimed he “requires additional time to satisfy the remaining obligations” of his bail. 

The DOJ unsealed an indictment against Mashinsky on July 13. The department alleges that Mashinsky “orchestrated a scheme to defraud customers of Celsius Network” together with Roni Cohen-Pavon, the former chief revenue officer. 

According to the indictment, Mashinsky allegedly made false statements, manipulated CEL — the native token of Celsius — and attempted to orchestrate “ a scheme to defraud investors.”

Mashinsky was released on a $40 million bond on July 14. One of his lawyers, Jonathan Ohring, told Blockworks that Mashinsky “vehemently denies the allegations brought yesterday. He looks forward to vigorously defending himself in court against these baseless charges.”

The SEC, CFTC and FTC also filed suits against Mashinsky and Celsius, alleging that customers were “duped” into making crypto deposits on Celsius, and falsely claimed that the now-bankrupt crypto lender was a modern bank. 

“In order to meet the returns promised to its customers, Celsius engaged in increasingly risky investment strategies, including the extension of millions of dollars in uncollateralized loans and millions of dollars in unregulated, risky decentralized finance agreements,” the CFTC said.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

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

Research report - cover graphics (1).jpg

Research

In this report, we dive into crypto private market data to gather insights on where the future of the industry is headed. Despite a notable downturn in private raises, capital continues to infuse promising projects that aim to transform payments, banking, consumer experiences, community, and more, with 2023 being the fourth-largest year for crypto venture capital.

article-image

Ethereum Dencun will enable Ethereum transactions to be submitted as blobs, potentially alleviating the costs of posting data on the blockchain

article-image

After a rocky start, bitcoin ETF shareholders are now well in the green

article-image

Revolut said that the standalone crypto exchange is currently “invite only”

article-image

The stock price jump comes after Coinbase reported ending its seven-quarter run of net losses during the fourth quarter

article-image

BUZZ holds shares of Coinbase, Robinhood and MicroStrategy

article-image

Opinion: Even though I didn’t pay for my “Diamond Hands” burger with BTC, don’t let that fool you into thinking that crypto’s development is futile