A federal judge has issued an order mandating the freezing of specific bank accounts and assets associated with the former CEO of Celsius, Alexander Mashinsky (he was arrested back in July).

This directive comes in response to a motion filed by the United States (US) Justice Department and was formally recorded in a filing dated 5 September, within the US District Court for the Southern District of New York.

The judge's approval has led to the unsealing of a restraining order pertaining to Alexander's assets, enabling the Justice Department to initiate asset freezes across accounts held at Goldman Sachs and Merrill Lynch, registered under the names of holding companies, as well as accounts held at First Republic Securities, SoFi Bank, and SoFi Securities, all under the name of Alexander Mashinsky.

"According to court documents, there is probable cause to believe Mashinsky’s assets are tied to securities fraud, wire fraud, market manipulation, and money laundering. Consequently, these assets are now subject to forfeiture."

Furthermore, the order encompasses property owned by Mr. Mashinsky and his wife, Kristine, located in Austin, Texas, a residence acquired in 2021.

Alexander Mashinsky Denies All Charges

Alexander has vehemently refuted the charges against him, demonstrating an unwavering commitment to defending his reputation and legacy through the legal process.

Following his release on a $40 million bail, his attorney, Jonathan Ohring, unequivocally stated Alexander's denial of all allegations.

Simultaneously, US regulatory bodies, including the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), are intensifying their efforts to combat fraud within the cryptocurrency industry.

This heightened enforcement is a response to a series of high-profile collapses and growing public apprehension regarding the sufficiency of existing regulatory frameworks.

It is worth noting that the Federal Trade Commission had previously imposed a substantial $4.7 billion fine on Celsius, albeit suspending it to enable the platform to utilise its assets during bankruptcy proceedings.

However, the recent asset freeze introduces fresh uncertainties concerning both Alexander's future and the broader cryptocurrency sector.