In the ever-evolving narrative of former Celsius CEO Alex Mashinsky, recent developments suggest heightened legal scrutiny. A court in the southern district of New York dealt a blow to Mashinsky’s financial situation, approving the US Department of Justice’s appeal to freeze certain bank accounts and properties linked to him. Specifically, the court’s decision extends to prestigious financial institutions such as Goldman Sachs, Merrill Lynch, First Republic Securities, SoFi Bank, and SoFi Securities.
Freezing of Assets and Property
Beyond monetary assets, the overall court decision also encompasses a prime real estate property. Located in Austin, Texas, a property acquired by Alex Mashinsky and his wife, Kristine, in 2021, has been affected by the court’s order. Interestingly, this property has been on the market for over a year, coinciding with the tumultuous period leading to Celsius’ bankruptcy declaration in July 2022.
Pursuit of Legal Action
A plethora of agencies, including the Commodity Futures Trading Commission and the Securities and Exchange Commission, have filed civil lawsuits against Mashinsky in July. Concurrently with these proceedings, the Federal Trade Commission imposed a colossal fine of $4.7 billion on Celsius. Interestingly, the execution of this fine has been temporarily suspended, allowing the besieged platform to gather these funds amidst its bankruptcy travails.
