Former Celsius CEO Alex Mashinsky’s trial start date has been postponed by U.S. District Judge John Koeltl due to the “volume of discovery” and the “complexity of the case.” This decision grants the United States Department of Justice additional time for discovery, allowing them to provide related documents to Mashinsky’s defense team.
In an order issued on July 25, Judge Koeltl stated that the time between July 25 and Oct. 3 will not be considered for Speedy Trial Act calculations, which require a federal criminal trial to commence within 70 days of an indictment being filed. The judge justified the continuance, prioritizing the interests of justice over the defendant’s right to a speedy trial.
Under the law, prosecutors are obligated to disclose any information that could be beneficial to Mashinsky’s defense and relevant to the case. The Oct. 3 conference will occur just one day after the trial against former FTX CEO Sam Bankman-Fried, who faces charges in the same district.
It is important to note that Celsius filed for Chapter 11 bankruptcy in July 2022, shortly after announcing the suspension of all withdrawals without a definitive timeline for their reinstatement. Mashinsky resigned as CEO in September 2022.
The charges against Mashinsky include securities fraud, commodities fraud, and wire fraud, all related to alleged fraudulent activities and misleading information provided to Celsius’ customers about the company’s business practices. The former CEO has pleaded not guilty to all charges and was released on a $40 million bond.
No trial date has been set for Mashinsky’s criminal case yet. In addition to the fraud charges, the Commodity Futures Trading Commission has filed a complaint against him, and the Securities and Exchange Commission has brought its civil suit. Furthermore, the Federal Trade Commission imposed a $4.7 billion fine on Celsius in July.