Ex-Celsius CEO Alex Mashinsky’s bail set at $40 million

• The ex-Celsius CEO was arrested on Thursday.
• Celsius filed for bankruptcy in 2022, alongside other leading crypto lenders.
• Mashinsky’s bail must be signed by two financially recognizable persons.

Alex Mashinsky, the founder & former CEO of bankrupt crypto lender Celsius Network, has pleaded not guilty to fraud charges filed against him by the US Department of Justice.

Mashinsky was arrested on Thursday, with the DOJ charging him with securities fraud, wire fraud, and commodities fraud. The ex-Celsius CEO also faces accusations of manipulating the price of the crypto platform’s native asset CEL.

Mashinsky pleads not guilty

The DOJ’s arrest and arraignment of the ex-Celsius CEO came as the SEC also brought charges against Mashinky. The Commodity Futures Trading Commission (CFTC) has also filed complaints against him.

Today we charged Celsius and its Alex Mashinsky with fraud and the unregistered offer and sale of securities.https://t.co/BoulI5RzVh pic.twitter.com/E9ygRtwC7g

— U.S. Securities and Exchange Commission (@SECGov) July 13, 2023

Mashinksy pleaded not guilty to the DOJ charges and was granted a $40 million bail. The personal recognizance bond has to be signed by two persons deemed to be financially responsible. 

According to court documents published on July 14, the former crypto figure’s wife is one of two FRPs, while the second FRP needs to append their signature today. A key date in this development is July 21, which is a court-set deadline for the second FRP.

While the former Celsius boss will be released without paying the $40 million bond, there’s a claim on his bank account and residence in New York.  Mashinsky has also been ordered to surrender his travel documents to authorities and is prohibited from opening bank or cryptocurrency accounts unless first approved by Pretrial Services.

Mashinsky is yet another high-profile crypto figure to be arrested following the collapses and bankruptcies that hit crypto companies in 2022. Former FTX CEO Sam Bankman-Fried and Terra founder Do Kwon are others.