Last Updated on September 7, 2023 by Bitfinsider
In a filing dated September 5, the Southern District of New York U.S. District Court reported that a judge had approved a motion to unseal a restraining order pertaining to Mashinsky’s property. Accounts at First Republic Securities, SoFi Bank, and SoFi Securities under Mashinsky’s name, as well as accounts at Goldman Sachs and Merrill Lynch under the names of holding entities, may all be frozen by the Justice Department.
The ruling also covered Mashinsky’s Austin, Texas property, which he and his wife, Kristine, bought in 2021. Around the time Celsius filed for bankruptcy in July 2022, the mansion had been on the market for sale for more than a year.
Co-founder of the cryptocurrency lending platform Celsius in 2017, Mashinsky announced in September 2022 that he was leaving his position as CEO because he felt his role was becoming a “increasing distraction” for users who were going through “difficult financial circumstances.” Authorities from both state and federal levels have previously targeted the company for allegedly selling securities that were not registered.
Authorities in the United States detained Mashinsky in July on charges that the former CEO had deceived Celsius investors and conned customers out of billions of dollars. After entering a not guilty plea to all counts, he was freed on a $40 million bail with conditions that included electronic monitoring and not transferring, withdrawing, or receiving more than $10,000 without permission.
In July, Mashinsky was the subject of civil cases filed by the Securities and Exchange Commission and the U.S. Commodity Futures Trading Commission. In the midst of Mashinsky’s criminal and civil allegations, Celsius announced settlements. Additionally, Celsius was fined $4.7 billion by the Federal Trade Commission for allegedly “duping” users. However, the sentence was put on hold so that Celsius could utilise the assets as part of its bankruptcy proceedings.
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