• U.S. District Judge John Koeltl granted prosecutors an extension on the criminal trial of former Celsius CEO Alex Mashinsky until October 3, 2023.
• The Speedy Trial Act mandates that a federal criminal trial must commence within 70 days of an indictment being filed
• Judge Koeltl justified his decision by citing the “volume of discovery” and the “complexity of the case” against Mashinsky.
The cryptocurrency platform Celsius filed for Chapter 11 bankruptcy in July 2022, only weeks after abruptly suspending all withdrawals without offering a clear timeline for their resumption. Following the turmoil, Celsius CEO Alex Mashinsky resigned from his position in September 2022. Maschinsky was charged and arrested on multiple counts, including securities fraud, in New York on July 14th.
U.S. District Judge John Koeltl issued an order to grant prosecutors an extension on the Alex Mashinsky case On July 25th till October 3rd. The decision give prosecutors more time to gather evidence before the criminal trial, which would otherwise be required to commence within 70 days of the indictment being filed according to The Speedy Trial Act mandate . Judge Koeltl justified this decision by citing the “volume of discovery” and the “complexity of the case” against Mashinsky as well as stating that it was in best interest for justice served by granting a continuance outweighing any possible delays caused by this extension.
Despite these looming charges, Maschinsky has pleaded not guilty and has been released on a $40 million bond as he prepares to defend himself in court with a next conference scheduled for October 3rd but no trial date set yet..
Celsius Bankruptcy Aftermath
After filing for bankruptcy , Celsius allocated $24 million for legal expenses due to these accusations against their former CEO .
The US district judge John Koeltl granting an extension till October 3rd gives prosecutors enough time to gather evidence before starting trials which were originally set within 70 days according to The Speedy Trial Act mandate giving justice its due course with little disruption .