SEC Lawsuit Against Celsius and Alex Mashinsky: What You Need to Know

Tiffany Fong, a crypto influencer and journalist, recently discussed the developments surrounding Alex Mashinsky and Celsius. In a conversation with Thinking Crypto, she mentioned that Alex Mashinsky, the former CEO of Celsius, has been indicted on fraud charges after over a year of waiting for legal action. This delay in legal proceedings was in contrast to the quick response in the case of Sam Bankman-Fried (Sam), the CEO of FTX, who was arrested shortly after his company’s collapse.

Tiffany spoke about the contrast in the timing of legal actions against the two CEOs. While FTX faced troubles in November and Sam was promptly arrested, Celsius experienced its collapse in July 2022. Still, it took over a year for Alex Mashinsky to be charged with any wrongdoing. She said Alex is currently on house arrest in his multi-million dollar penthouse in Manhattan, which he likely purchased with customer funds.

Tiffany also shared her personal experiences with Alex Mashinsky, mentioning that she had confronted him at a conference. She described his discomfort and noted that people at the event were surprisingly polite to him despite the controversy surrounding Celsius.

She believes he had more evil intentions and was knowingly misleading Celsius customers. She compared this to Bankman-Fried, who she acknowledged was not innocent but seemed less evil.

The former CEO of Celsius Network is facing seven criminal charges related to cryptocurrency fraud. His trial is scheduled for September 17, 2024, in a New York court. In July, the SEC sued Celsius and its former CEO, accusing them of fraud and spreading false information to investors. After being arrested, Mashinsky pleaded not guilty to the charges, and he was released on bail, using his Manhattan home as collateral.