In a legal commotion, the banking and real estate holdings of the ex-head of Celsius, Alex Mashinsky have been frozen amidst a progressing criminal lawsuit, as revealed by court documents which found light on Tuesday. Previously during July, Mashinsky, also being the co-initiator of the lending platform, was taken under arrest with multiple counts that include securities fraud and manipulation related to the company’s CEL token. However, he pleaded not guilty, with his legal team portraying the charges as “baseless”.
The development evolved further on August 16 when New York Judge Jed Rakoff prohibited financial institutions from liquidating assets in numerous bank accounts of Goldman Sachs held under the name of Koala LLC and a residential property located in Austin, TX. This decision was disclosed after being kept undercover due to concerns regarding the potential depletion of the accounts before their eventual freezing.
Mashinsky’s release had been facilitated through a $40 million bond during July. The prosecutors maintained that they would allocate six to eight weeks for the collection of proof, which might include online videos presenting Mashinsky; a series of content where it has been alleged that he had misguided the investors.
Throwing the spotlight on the creditors of the toppled crypto company Celsius, they are currently at a crossroads, committing their votes on whether to offload assets to the buyer consortium Fahrenheit. This move, if executed, could potentially pave a path for them to regain some access to their investments once again. Celsius had suffered a rough tumble in July 2022, during the grip of the crypto winter which painted a grim scenario.
As this privacy-sealed order unveils, and Mashinsky’s wealth gets locked away, it underlines the on-going struggle between the traditional legal infrastructure and the nebulous world of crypto. Meanwhile, the decision of Celsius’s creditors also garners attention, as it tosses an age-old question, juxtaposing short-term recovery against long-term faith in the technology they original bet upon.
Source: Coindesk
