Crypto lending platform Celsius Network was sued in July by the United States Securities and Exchange Commission (SEC) on a series of serious charges, followed by the arrest of the platform’s CEO, Alex Mashinsky.
Among the charges were securities fraud and manipulation of the company’s CEL token. Mashinsky denies these charges, but until the American judicial system renders a decision, it has been decided to freeze the former CEO’s banking and real estate assets.
Court’s Freezing Order: Assets and Accounts
On August 16th, New York Judge Jed Rakoff ordered the freezing of Mashinsky’s financial assets. Specifically, Goldman Sachs bank accounts and a residence in Austin, Texas, are included in this freezing order. Initially, the decision was kept confidential due to concerns that the accounts could be emptied; however, the order is now sealed.
Prosecution Process: Evidence Collection and Allegations
Prosecutors say they need six to eight weeks to gather evidence to support their claims that Mashinsky misled investors. Among the evidence being collected about Mashinsky, who was released in July on a $40 million bond, are online videos.
Alex Mashinsky continues to deny the charges, and his lawyers claim that these accusations are “baseless.” However, while the legal process continues, the former CEO’s assets remain frozen, and prosecutors are continuing the evidence collection process.