Former Celsius CEO Alex Mashinsky is gearing up for a <\/span>criminal trial slated<\/span><\/a> for Sept. 17, 2024. This development comes in the wake of allegations against him for defrauding customers. Moreover, the report claimed that Mashinsky misled the customers about the financial health of the crypto lender.<\/span><\/p>\n Celsius <\/span>declared bankruptcy<\/span><\/a> last year and now owes vast sums, running into billions, to its investors. In July, prosecutors pointed fingers at Mashinsky and Celsius for inflating the price of the company\u2019s native token using customer funds. Besides, they were accused of deceiving their clientele repeatedly. Additionally, Roni Cohen-Pavon, the chief revenue officer at Celsius, has also faced criminal charges and reportedly entered a guilty plea just last month.<\/span><\/p>\n <\/p>\n The Securities and Exchange Commission (SEC)<\/span> sued the crypto lender<\/span><\/a> and its former CEO for raising money through what they allege were deceitful and unregistered sales of \u201ccrypto-asset securities.\u201d Furthermore, the SEC accused the duo of lying to investors about Celsius\u2019s financial situation and tampering with the price of CEL, the company\u2019s signature token.<\/span><\/p>\n Additionally, the Commodity Futures Trading Commission (CFTC) brought its own set of fraud charges against both Mashinsky and the company. Following these accusations, some of Mashinsky\u2019s assets, including his Texas home and funds at notable institutions like Goldman Sachs, Merrill Lynch, and SoFi Bank, were ordered to be frozen.<\/span><\/p>\n <\/p>\n Despite the gloomy clouds of legal battles, there\u2019s hope for the creditors of Celsius. They recently gave <\/span>their nod to a reorganization<\/span><\/a> strategy. This plan guarantees that the owed parties will receive payments in prominent cryptocurrencies like Bitcoin and Ethereum. Moreover, they will be handed equity in a fresh corporate entity, termed \u201cNewCo.\u201d<\/span><\/p>\n <\/p>\n However, this strategy had its critics since Some creditors voiced their concerns about accepting shares in an unfamiliar venture. Furthermore, there was a demand for the restitution of CEL tokens, the native cryptocurrency of Celsius.<\/span><\/p>\n Read Also:<\/b> Binance to Halt BUSD Borrowing and Staking Services by October 25th<\/span><\/a><\/p>\n <\/p>\n \u2713 Share:<\/p>\nMashinsky Faces SEC and CFTC Charges<\/h2>\n
Celsius Creditors Approve New Payment Plan<\/h2>\n
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