Founder of Bankrupt Crypto Lender Celsius Arrested on Fraud Charges, Bail Set at $40 Million

Alexander Mashinsky, the founder and former CEO of bankrupt crypto lender Celsius, has been granted bail of $40 million by a US District Judge after being arrested on charges of fraud. Mashinsky has pleaded not guilty to seven counts of misleading investors and manipulating the price of his CEL token.

As part of the bail agreement, Mashinsky will be unable to travel and cannot open new bank or crypto accounts. The bond will be secured by a financial claim on his New York City home and bank account, and his wife will sign the bond.

The Department of Justice, Federal Trade Commission, and federal securities and commodities regulators announced coordinated action against Mashinsky and other executives. Mashinsky's lawyers have denied the allegations and stated that he looks forward to defending himself in court.

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