Judge gives US prosecutors until October 3 to explore case against Alex Mashinsky

United States Department of Justice attorneys have additional time to search and review documents related to the defense team of former Celsius CEO Alex Mashinsky.

In a July 25 order, U.S. District Judge John Koeltl said he would exclude the time between July 25 and October 3 from the Speedy Trial Act’s calculation — the law that requires federal criminal prosecutions to begin within 70 days after an indictment is filed. He cited the “volume of the search” as well as the “complexity of the case” against the former Celsius CEO.

“The Court has found that the ends of justice by granting a continuance are more important than the best interests of the defendant and the public in a speedy trial,” Koeltel said.

The law requires prosecutors to extensively disclose to Mashinsky’s legal team any information “in favor of the accused” that is “material to conviction or conviction”. The October 3 conference will put Mashinsky in a New York courtroom just one day after the start of a trial against former FTX CEO Sam Bankman-Fried, who has been charged in the same district.

Connected: What the Criminal Charges Against Celsius’ Former CEO Mean for the Crypto Industry

Celsius filed for Chapter 11 bankruptcy in July 2022, weeks after the platform announced it would freeze all withdrawals without providing a firm timeline for their return. Mashinsky resigned as CEO in September 2022.

US authorities charged and arrested Mashinsky on July 13 on counts of securities fraud, commodity fraud and wire fraud related to allegedly defrauding customers and misleading them about certain information on Celsius’ business practices. The former Celsius CEO has pleaded not guilty to all charges and has been released on $40 million bond.

The judge has not yet set a hearing date for the former Celsius CEO’s criminal case. The fraud allegations came in parallel with a complaint filed against Mashinsky by the Commodity Futures Trading Commission. The Securities and Exchange Commission has also filed its own civil lawsuit against the former CEO, while the Federal Trade Commission announced it fined Celsius $4.7 billion in July.

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