Former CEO of Celsius, Alex Mashinsky, has voluntarily waived any potential conflict of interest in his legal representation following a brief hearing in a New York courtroom. Mashinsky appeared in the United States District Court for the Southern District of New York for a Curcio hearing, during which the judge questioned him about his legal representation. Mashinsky reportedly waived his right to any conflict with lawyers Marc Mukasey and Torrey Young, who are also involved in the criminal case against former FTX CEO, Sam “SBF” Bankman-Fried. The judge informed Mashinsky that while Celsius may claim to be a victim of Alameda Research, his lawyers cannot use documents that may conflict with the two cases. Bankman-Fried’s sentencing hearing is set for March 28, while Mashinsky’s criminal trial is expected to begin on September 17.
Mashinsky, who expressed that this was his first time in court, stated, “I am not an expert in this space. I am spending money to prove my innocence. I assume SBF’s sentencing will be completed before my trial. But we cannot know.” Both prosecutors in Mashinsky’s and Bankman-Fried’s cases called for Curcio hearings in February to address concerns about potential conflicts of interest. The US government alleged that Mashinsky had partially blamed Celsius’ collapse on FTX’s sister company, Alameda Research, potentially due to Bankman-Fried’s actions.
With Mashinsky waiving any potential conflicts in his case, Bankman-Fried is scheduled to have a similar Curcio hearing on February 21. Bankman-Fried has been mostly out of the public eye since being convicted of seven felony counts in November 2023. However, on February 19, photos of him surfaced, providing a rare glimpse into his life behind bars.
Mashinsky resigned as the CEO of Celsius in September 2022 and was indicted on seven felony counts, including securities fraud, wire fraud, and conspiracy to commit fraud related to his activities at the platform. He is currently free on $40-million bail pending his trial.