Ex Celsius CEO Seeks Dismissal of 2 Major Charges in Court Case

Former Celsius CEO Alex Mashinsky's lawyers want to drop charges in court. They filed a motion to dismiss commodities fraud and market manipulation charges against him. The motion, submitted on January 12 to the Southern District of New York's Court, asks to remove two felony counts before his trial in September 2024.

The lawyers argue there's a conflict in how cryptocurrencies are handled. They say it's wrong to treat the Celsius Earn Program as both a security and a commodity. The defense believes this contradiction should lead to dismissing one of the counts. They argue, "It is not clear if the government intends to argue that Celsius’s Earn Program constituted the purchase of a security and the sale of a commodity at the same time [...] the government cannot have it both ways and the appropriate remedy is the dismissal of one of the counts.”

Mashinsky's team also wants to drop the market manipulation charge, citing a lack of fair notice. They claim this charge is not a crime but rather a civil violation. Additionally, they request removing references to Celsius's bankruptcy from the case.

In 2022, Celsius filed for bankruptcy, like other crypto firms. Mashinsky resigned as CEO in September 2022 and was indicted on seven felony counts in July 2023. He is currently out on $40 million bail. Other crypto leaders have faced legal issues too, including former FTX CEO Sam Bankman-Fried and former Binance CEO Changpeng Zhao.