Celsius Co-Founder’s Assets Frozen Amidst Fraud Allegations

10 months ago
1 min read

In a chilling turn of events, former Celsius CEO Alex Mashinsky finds himself in hot water as a court order freezes his bank accounts and properties.

The freeze, which includes high-profile institutions like Goldman Sachs and Merrill Lynch, comes in the wake of seven fraud charges against Mashinsky.

The court’s decision, initially kept under wraps to prevent potential asset depletion, has also put a freeze on Mashinsky’s Austin, Texas home, listed for sale at $2.49 million.

Mashinsky’s legal troubles began when federal authorities arrested him in July on allegations of deceiving Celsius investors.

Accusations range from misleading investors about the company’s financial health to unregistered securities sales and alleged price manipulation of Celsius’ native digital currency, CEL, resulting in a personal profit of around $42 million.

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Civil lawsuits from the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission have compounded Mashinsky’s legal woes. Meanwhile, Celsius filed for bankruptcy in July 2022, revealing a staggering $1.2 billion deficit compared to its assets.

The Federal Trade Commission’s $4.7 billion fine, intended to settle claims from creditors, has been postponed as the bankruptcy case unfolds. Mashinsky, maintaining his innocence, secured bail at $40 million, while prosecutors gathered evidence for what his defense team calls “baseless” charges.

The courtroom drama surrounding Mashinsky promises to be one of the most closely watched legal battles in the financial world.


Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.


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