Celsius Founder Alex Mashinsky Issued $40 Million Bail In DOJ Fraud Case

Former Celsius CEO Alex Mashinsky will be released on a $40 million bail agreement following his arrest on Thursday.Mashinsky was detained by the U.S. Department of Justice on claims that he defrauded investors and raised billions through illegal financial offerings.The DOJ indicted Mashinsky on seven counts of securities fraud, wire fraud, commodities fraud, and market manipulation of his company’s native token CEL.The former Celsius boss denied the allegations along with accusations from the SEC, CFTC, and New York’s Attorney General.

A court has agreed to release Alex Mashinsky on $40 million bail after the former Celsius CEO was indicted and arrested by the Department of Justice on Thursday. The DOJ charged Mashinsky on seven counts including securities fraud and market manipulation.

Mashinsky’s personal recognizance bond must be signed by two financially responsible persons. The first, his wife, must sign the $40 million bail agreement by today July 14. The court set a deadline of July 21 for the second FRP’s signature.

This bail agreement is usually issued to individuals with close ties to their community. The personal recognizance bond also considers the defendants’ criminal records, whether they are a flight risk, and their employment status among other factors.

A personal recognizance bond means that Mashinsky will be released without actually paying any money for his bail and will be required to attend all court hearings linked to his fraud case.

Celsius Boss Dismisses Criminal Charges

On July 13, the DOJ arrested Mashinsky and filed criminal charges against the former Celsius CEO for allegedly committing securities fraud, wire fraud, commodities fraud, and manipulating the price of CEL, his company’s native token.

The SEC and previously the CFTC also accused Mashinsky of falsely marketing Celsius as a path to financial freedom while he and other executives used customer funds to make risky investments, fund personal expenses, and raise billions of dollars through unregistered offerings.

“He looks forward to vigorously defending himself in court against these baseless charges,” Mashinsky’s lawyer Jonathan Ohring said on behalf of the Celsius founder who denied all the allegations against him.

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