A federal judge has denied former Celsius Network CEO Alex Mashinsky’s request to dismiss two fraud charges from his indictment. 

The charges accuse Mashinsky of manipulating the price of the CEL token, Celsius’s native cryptocurrency, through artificial inflation tactics.

The Celsius CEO Will Continue to be on Tried for Seven Counts of Fraud

US District Judge John G. Koeltl ruled on November 8 that Mashinsky’s legal arguments were “either moot or without merit.”

Mashinsky’s defense had contended that his actions could not simultaneously violate both the Commodity Exchange Act and the Securities Exchange Act. However, the judge affirmed that the charges under each law could proceed independently.

One defense argument centered on whether Celsius’s deposit program, which offered rewards for Bitcoin deposits, constituted a commodity contract. Judge Koeltl ruled that this issue could be addressed later during the trial.

Mashinsky’s attorneys, Mukasey Young LLP, sought to dismiss the Commodity Exchange Act charge, arguing it overlapped with the Securities Exchange Act violation. 

Judge Koeltl rejected this, stating that a conviction under one statute would not automatically negate charges under the other.

Mashinsky’s Sentencing Could be Worse than Sam Bankman-Fried

Mashinsky faces multiple charges, including wire fraud and market manipulation, tied to Celsius’s 2022 collapse. Once a leading crypto lender, Celsius filed for bankruptcy after freezing customer withdrawals due to a significant financial shortfall. 

Prosecutors claim Mashinsky deceived investors about the safety of the CEL token and the platform’s stability. If convicted on all charges, Mashinsky could face a maximum sentence of 115 years. 

His trial, which includes seven cri

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Author: Mohammad Shahid