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Disgraced Former FTX Founder and Former Celsius CEO Face Legal Troubles
Disgraced former FTX founder, Sam Bankman-Fried, and former Celsius CEO, Alex Mashinsky, appeared in a Manhattan federal court with a new legal team. Bankman-Fried’s latest hearing saw his original legal team of Mark Cohen and Christian Everdell formally withdrawn from the case, and he appeared chained and visibly slimmer in his first court appearance following his landmark November 2023 trial.
Bankman-Fried’s Legal Proceedings
During the hearing, Bankman-Fried formally waived any conflict of interest regarding having the same representation as Mashinsky in the form of new lawyers Marc Mukasey and Torrey Young. Bankman-Fried was later found guilty on all seven fraud counts brought against him, including wire fraud, and is facing what could amount to over 100 years in prison.
Mashinsky’s Legal Issues
Mashinsky is also facing similar legal challenges with seven charges, including securities fraud, wire fraud, and market manipulation, and is facing a maximum total of 115 years in prison. Both Bankman-Fried and Mashinsky waived their right to conflict-free representation in their separate legal hearings.
FTX and Celsius Aftermath
Both FTX and Celsius were forced into lengthy bankruptcy processes after the scandals. Mashinsky’s former company recently emerged from bankruptcy proceedings with plans of an orderly wind-down of its operations, while lawyers for FTX promised debtors of the doomed crypto exchange that their money would be paid back in full. Bankman-Fried is currently held at the Metropolitan Detention Center in Brooklyn, with his sentencing scheduled for March 28, 2024.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
