Former Celsius CEO Alex Mashinsky Seeks Witnesses for Upcoming Trial

Alex Mashinsky, the former CEO of Celsius serving a 100-year prison sentence, is seeking the testimony of six ex-employees as part of his criminal case.

Charged last year with defrauding customers and misrepresenting Celsius’ financial health, Mashinsky’s defense argues that he relied on information from his team and did not intend to cause harm. His lawyers, in a recent memorandum, have requested that former CFO and CRO testify.

Mashinsky’s defense asserts that the CEO’s actions were based on the guidance provided by experienced Celsius professionals. They claim that Mashinsky is facing an extreme sentence, with the government suggesting a 115-year prison term based on current sentencing guidelines.

Celsius, which filed for bankruptcy in 2022 and was fully liquidated this year, has been under significant regulatory scrutiny. In July 2023, the SEC accused Celsius and Mashinsky of fraudulent activities, including misrepresenting the company’s financial status and manipulating the price of CEL tokens.

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Among the witnesses requested is Roni Cohen-Pavon, the former Chief Revenue Officer who has already pleaded guilty. Cohen-Pavon is alleged to have ignored Mashinsky’s instructions and engaged in token repurchases, which Mashinsky’s lawyers argue was done without his knowledge.

Mashinsky’s defense also claims that during the “Ask Mashinsky Anything” events, the company’s legal and risk teams made edits to the content without informing him. They argue that Mashinsky was led to believe any inaccuracies in his statements would be corrected and that his acceptance of corrections indicates good faith rather than fraudulent intent.

Alexander Stefanov