Lawyers representing the US Department of Justice were granted additional time for investigation in the case against former Celsius CEO Alex Mashinsky, allowing his defense team to review relevant documents. US District Judge John Koeltl issued an order on July 25, exclus Ding the period between July 25 and October 3 from the Speedy Trial Act calculations, which mandates federal criminal trials to commence within 70 days of an indictment. The judge cited the "volume of discoveries" against Mashinsky and the complexity of the case as the reasons for the extension.
The Speedy Trial Act requires prosecutors to disclose information beneficial to the defender and material to guilt or punishment to Mashinsky's legal team. The trial for Mashinsky is scheduled to begin on October 4 in New York, a day after the trial of former FTX CEO Sam Bankman -Fried, who faces charges in the same district.
Celsius, the company previously led by Mashinsky, filed for Chapter 11 bankruptcy protection in July 2022 after announcing the suspension of all withdrawals without a clear timeline for their resumption. Mashinsky stepped down as CEO in September 2022.
Mashinsky was charged with securities fraud, commodity fraud, and wire fraud by US authorities on July 13. The charges allege that he defrauded customers and misled them about certain aspects of Celsius's business practices. Mashinsky has pleaded not guilty to all charges and was released on a $40 million bond.
A trial date for the criminal case against the former CEO has not been set yet. Alongside the fraud charges, the CFTC also filed a complaint against Mashinsky, and the SEC filed a civil lawsuit. Additionally, the Federal Trade Commission imposed a fine of $4.7 billion on Celsius in July.
