Former Celsius Network CEO Alex Mashinsky was released on $40 million bail on July 13, the same day he was arrested on multiple fraud charges, according to CNN. report.

Mashinsky’s attorney, Jonathan Oring, told CNN that the former CEO “strongly” denies all charges and plans to fight it “vigorously” in court.

Bail was secured through the Mashinsky Mansion in Manhattan, New York, and is currently valued at $40 million.

widespread fraud

Federal prosecutors indicted Mr. Mashinsky after an investigation into the collapse of the Celsius network uncovered evidence alleging that the Celsius network was a widespread fraud. He has also been indicted by the SEC, CFTC and FTC.

According to an indictment filed in New York, the former CEO pretended to operate a cryptocurrency lender to defraud customers into depositing their assets.

According to stuffing:

“Massinski operated Celsius as a high-risk investment fund, accepting client funds under false and misleading pretexts, making clients far more risky and far more profitable than those represented by Mashinsky.” It turned into an ignorant investor in a low business.”

The charges against the former CEO include securities fraud, wire fraud and commodity fraud.

In addition, Mashinsky and Celsius Network’s former Chief Revenue Officer Roni Cohen Pavon have also been accused of manipulating the price of the network’s native token, CEL, with the intention of selling it at a premium.

crackdown on cryptocurrency fraud

The indictment against Mashinsky is the latest in a series of moves by regulators and law enforcement to crack down on fraud in the cryptocurrency industry.

Massive implosion incidents in the industry in 2022, such as FTX and Celsius, have raised public questions about the adequacy of laws and regulatory oversight in recent months.

Meanwhile, politicians are calling for regulators and law enforcement to take a more proactive approach to restoring trust in the system. Lawmakers are also working to establish a proper framework to ensure the cryptocurrency industry falls under regulatory umbrella.

Part of the lawmakers’ effort aims to increase clarity on the long-standing question of whether cryptocurrencies are securities, which appears to be at the heart of many of the industry’s regulatory woes. .

Alex Mashinski was released on $40 million bail. Denies fraud allegations that first appeared on CryptoSlate “vigorously”.

By Jules

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