Bankrupt crypto lender Celsius Network's former CEO Alex Mashinsky has pleaded not guilty to charges in seven counts, including conducting fraud, misleading investors, and manipulating cryptocurrencies, brought by U.S. prosecutors. Besides, the U.S. District Judge has determined a $40M bail for Mashinsky to be released pending trial. The former CEO has also been restricted from traveling and opening new bank or crypto accounts. - The deal was signed by Mashinsky's wife, along with another co-signer.
- The bail bond was secured through a financial claim on Mashinsky's home in New York City and a bank account.
- Lawyers for Mashinsky said the former CEO looks forward to defending himself vigorously in court against these baseless charges.
- The bail agreement came nearly a day after Mashinsky was arrested by U.S. law enforcement agencies.
- The U.S. Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and the Federal Trade Commission (FTC) also simultaneously filed lawsuits against Mashinsky and Celsius.
- The increased scrutiny from the regulators followed the CFTC investigators' conclusion that Celsius and Mashinsky violated U.S. laws before the collapse by misleading investors and operating without registration.
Celsius offered loans and paid high interest rates on crypto deposits. - The company filed for Chapter 11 bankruptcy protection in July 2022, mainly due to its liquidity issues and the crypto market downturn triggered by the multi-billion dollar Terra ecosystem's collapse that wiped over $60B off the industry.
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