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Ex-Celsius CEO- Alex Mashinsky’s Legal Defense Seeks Dismissal of Fraud Charges
Amidst ongoing legal battles in the crypto space, lawyers representing former Celsius CEO Alex Mashinsky have filed a motion to dismiss commodities fraud and market manipulation charges against him. The motion, submitted to the Southern District of New York’s Court on January 12, aims to eliminate two felony counts ahead of his scheduled trial in September 2024.
Argument on Cryptocurrency Handling Conflict
Celsius CEO, Mashinsky’s defense argues a conflict in how cryptocurrencies are treated, specifically regarding the Celsius Earn Program. They contend that treating it as both a security and a commodity is contradictory. The defense asserts that this inconsistency should result in the dismissal of one of the counts, stating, “It is not clear if the government intends to argue that Celsius’s Earn Program constituted the purchase of a security and the sale of a commodity at the same time […] the government cannot have it both ways, and the appropriate remedy is the dismissal of one of the counts.”
January 15, 2024 $BTC 42.720 $ETH 2.531#Celsius CEO Appeals for Dismissal of Two Fraud and Manipulation Charges pic.twitter.com/fXEWT5TIJW
— D2 Trade Coin (@D2TraderCoin) January 16, 2024
Additional Legal Maneuvers in Mashinsky’s Defense Strategy
In a comprehensive legal strategy, Alex Mashinsky’s defense team seeks not only the dismissal of fraud charges but also the dropping of the market manipulation charge.
They argue that the market manipulation charge lacks fair notice and should be considered a civil violation rather than a criminal offense. Furthermore, the defense requests the removal of references to Celsius’s bankruptcy from the case.
The legal proceedings follow Celsius’s filing for bankruptcy in 2022, a scenario faced by several other crypto firms during that time. Celsius CEO Alex Mashinsky stepped down as CEO in September 2022 and was indicted on seven felony counts in July 2023.
Currently out on $40 million bail, Mashinsky’s case reflects a broader trend of legal challenges faced by prominent figures in the crypto industry, including former FTX CEO Sam Bankman-Fried and former Binance CEO Changpeng Zhao.
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