Former Celsius CEO Alex Mashinsky Waives Potential Legal Conflicts Ahead of Fraud Trial
Summary:
During a recent Curcio hearing, Alex Mashinsky, the former CEO of Celsius, waived any potential conflicts in his legal representation. This legal proceeding addresses potential complications with lawyers Marc Mukasey and Torrey Young, who are involved in a criminal case against former FTX CEO Sam "SBF" Bankman-Fried. Prosecutors prompted both Mashinsky's and Bankman-Fried's cases to have Curcio hearings to decision possible conflicts of interest. Bankman-Fried's sentencing is set for March 28, while Mashinsky's trial is due to start on September 17. The former Celsius executive resigned in September 2022 and was charged with several felonies in July 2023, including fraud and conspiracy. Currently, Mashinsky is free on a $40 million bail.
Alex Mashinsky, the former CEO of Celsius, has foregone any plausible conflicts in legal representation, as was confirmed after a brief New York courtroom hearing. As per a report by Inner City Press on February 20, Mashinsky appeared in the Southern District of New York's United States District Court for a Curcio hearing. Here, questions regarding Mashinsky's legal representation were raised, and he reportedly relinquished the right to conflicts of interest with attorneys Marc Mukasey and Torrey Young. These lawyers have also put forward notices of appearance in a criminal litigation against the former FTX CEO, Sam "SBF" Bankman-Fried.
Judge John George Koeltl pointed out to Mashinsky that there might be arguments about Celsius being a victim of Alameda Research, but the use of documents that could potentially provoke a conflict between the two cases is barred. Sentencing for Bankman-Fried is due on March 28, whereas Mashinsky's criminal trial is predicted to commence on September 17.
Mashinsky's statement, as per Inner City Press, was, "This is my maiden court appearance. I am not well-versed with court proceedings. I am spending funds to vindicate myself. I reckon SBF's sentencing will conclude prior to my trial, but it's uncertain."
In February, a call for Curcio hearings was made by prosecutors of both Mashinsky and Bankman-Fried to discuss potential conflicts of interest. The American government alleges that Mashinsky partially attributed the downfall of Celsius to FTX's affiliate, Alameda Research, perhaps due to SBF's conduct. Following Mashinsky's surrendering to conflicts of interest in his case, Bankman-Fried is set to attend court on February 21 for a similar Curcio hearing. He has mostly been absent from public view since being found guilty of seven felony charges in November 2023, but on February 19, images of SBF from his prison life were released.
Mashinsky stepped down as Celsius's CEO in September 2022. He was subsequently charged with seven felonies in July 2023, including conspiracy to commit fraud, wire fraud, and securities fraud connected with his tenure at the platform. As of the news reporting time, he was released on a $40-million bail pending trial.
Published At
2/20/2024 9:35:00 PM
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