Mashinsky Joins FTX's Bankman-Fried In Fraud Defense

Former Celsius CEO Alex Mashinsky has chosen to share a lawyer with FTX’s Sam Bankman-Fried because they are both accused of wire fraud and inflating the value of their companies’ tokens.

According to a historic trial, Bankman-Fried was recently found guilty and is now waiting for his sentencing, which could include up to 120 years in jail.

Mashinsky’s Legal Strategy Amid Cryptocurrency Turmoil

According to the sources, Mashinsky told a federal judge about his decision and said he was ready to overlook any possible conflicts of interest caused by the fact that attorneys Marc Mukasey and Torrey Young were representing him and Bankman-Fried. In the past, Mukasey and Young represented Bankman-Fried in FTX’s trial, where the former CEO of FTX was found guilty.

This happened during Celsius’s rough downturn in 2022, making it one of the year’s most significant crypto company failures. The charges against Mashinsky say that he spread false information about Celsius’s security before it filed for bankruptcy. This makes the legal process even more complicated.

As the judge in charge of the case, U.S. District Judge John Koeltl made sure Mashinsky knew all about his right to an impartial lawyer. This safety step was taken because Mashinsky was worried that Alameda Research might have had something to do with Celsius’s downfall.

According to the prosecutors, Mashinsky’s work with Alameda Research led to Celsius’s death. Because of this, the court stressed how important it was for Mashinsky to be aware of and accept any conflicts that might arise because his legal team also represents Sam Bankman-Fried.

The prosecutors thought Mashinsky’s problems could be solved since he was aware of and okay with the situation. There were discussions regarding FTX possibly buying Celsius and replacing Mashinsky before the company went bankrupt.