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Attorneys for the US Department of Justice have additional time to make the discovery and give former Celsius CEO Alex Mashinsky’s defense team time to study the relevant documents.
In a July 25 ruling, U.S. District Judge John Coeltle said he would exclude the period July 25 through October 3 from the calculation of the Expedited Trial Act, a law that requires a federal criminal trial to begin within 70 days of an indictment. He cited the “volume of discoveries” as well as the “complexity of the case” against the former Celsius CEO.
“The Court considers that the purposes of justice, which are served by granting a stay, outweigh the best interests of the defendant and the public in a speedy trial,” said Judge Költl.
The law requires prosecutors to largely disclose any information “favorable to the accused” that “has implications for both guilt and punishment” to Mashinsky’s legal team. The Oct. 3 conference will place Mashinsky in a New York courtroom just a day after the start of the trial against former FTX CEO Sam Bankman-Fried, who was indicted in the same county.
Related: What Criminal Charges For Former Celsius CEO Mean For The Cryptocurrency Industry
Celsius filed for Chapter 11 bankruptcy in July 2022, weeks after the platform announced it would put all withdrawals on hold, without providing an exact timeline for their return. Mashinsky stepped down as CEO in September 2022.
U.S. authorities charged and arrested Mashinsky on July 13 with securities fraud, commodity fraud, and wire fraud related to allegedly deceiving customers and misleading them about certain information about Celsius’ business practices. The former Celsius CEO pleaded not guilty to all charges and was released on $40 million bail.
The judge has yet to set a trial date for the former Celsius CEO’s criminal case. The fraud allegations were made in parallel to a complaint filed by the Commodity Futures Trading Commission against Mashinsky. The Securities and Exchange Commission also filed a civil lawsuit against the former CEO, and the Federal Trade Commission announced it had fined Celsius $4.7 billion in July.
