A U.S. District Judge has set bail for Alexander Mashinsky, the founder and former CEO of the insolvent cryptocurrency lender Celsius, at $40 million after his arrest on fraud-related charges on Thursday.Following his Thursday arrest, Mashinsky entered a not guilty plea to seven counts of deceiving investors and manipulating the price of his CEL cryptocurrency, according to the court document.As part of the agreement, Mashinsky will be prohibited from traveling and from opening any new bank or cryptocurrency accounts.According to court documents, his wife will sign the bond while the other co-signer is still to be named.A financial claim on his New York City house and bank account will also serve as collateral for the bond.
Federal securities and commodities regulators as well as the Department of Justice jointly announced their plan to take action against Mashinsky and other executives on Thursday.Mashinsky’s attorneys wrote in an email that their client “vehemently denies the allegations brought” and that “he looks forward to vigorously defending himself in court against these baseless charges.”