The assets of former Celsius CEO Alex Mashinsky, including corporate bank accounts and a Texas property, have been frozen by court order as his criminal case progresses, according to recently unsealed court documents. Mashinsky, who co-founded the lending platform, was arrested in July on multiple charges, including securities fraud and manipulation of the company’s CEL token. He has pleaded not guilty to these charges, which his lawyers have called “baseless.”
On August 16, Judge Jed Rakoff in New York issued an order preventing financial institutions from selling assets in several Goldman Sachs bank accounts held in the name of the Koala LLC company and a residential property located in Austin, Texas. This order was initially kept secret due to concerns that the accounts might be emptied before the freeze took effect.
Mashinsky was released on a $40 million bond in July, and prosecutors have indicated that they will require six to eight weeks to gather evidence, including reviewing Mashinsky’s online videos in which he is alleged to have misled investors.