Mashinsky continues to face legal troubles.
Alex Mashinsky, the former CEO of crypto lending platform Celsius, has had certain bank accounts and property assets frozen by a US federal judge.
The development comes as part of a broader criminal case against Mashinsky and was enacted in response to a motion from the US Justice Department.
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A recent filing in the US District Court for the Southern District of New York reveals that the judge approved the unsealing of a restraining order against Mashinsky's assets.
This means the Justice Department is authorized to freeze accounts at Goldman Sachs and Merrill Lynch associated with holding companies under Mashinsky's control. The freeze also affects personal accounts at First Republic Securities, SoFi Bank, and SoFi Securities.
Additionally, a property in Austin, Texas, purchased by Mashinsky two years ago, has been included in the judicial order.
It is worth noting that Mashinsky was arrested and charged with defrauding users and misleading investors in July. Although he pleaded not guilty to all the charges, the man was released on a $40 million bail with conditions of electronic monitoring and limitations on financial transactions exceeding $10,000.
On top of that, the US Commodity Futures Trading Commission and the Securities and Exchange Commission filed civil cases against Celsius and Mashinsky.
The legal setback for Mashinsky follows his resignation as CEO of Celsius in September 2022. At the time of his departure, he claimed that his role was becoming an "increasing distraction" due to the financial troubles of the company's users.
The freezing of Alex Mashinsky's assets adds another layer to the unfolding legal saga involving the former Celsius CEO. With criminal and civil cases underway and massive financial penalties levied, the challenges facing Mashinsky and the crypto lending platform he co-founded are increasingly grave.
