Former Celsius CEO Alex Mashinsky has chosen to be represented by the same legal team as FTX’s Sam Bankman-Fried over allegations of wire fraud and artificially inflating the value of the company’s tokens.
Mashinsky expressed his decision to a federal judge, acknowledging his willingness to overlook any conflicts that may arise between Torrey Young and Bankman-Fried, as well as attorney Marc Mukasey, who represents him, according to a Bloomberg insight.
Both attorneys represented Bankman-Fried in the landmark trial of FTX, in which the former FTX CEO was found guilty. Bankman-Fried awaits sentencing next month, where he could face up to 120 years in prison.
Mashinsky’s decision comes in the wake of the 2022 Celsius slide, marking one of the year’s notable cryptocurrency failures, coming just before FTX’s own financial troubles. The charges against the former Celsius CEO are that he spread false information about the company’s stability before declaring bankruptcy.
The indictment prompted U.S. District Judge John Koeltl to make Mashinsky fully aware of his entitlement to non-conflicting legal representation, which highlighted concerns that Mashinsky had blamed part of Chelsea’s downfall on Alameda Research’s dealings.
Despite the potential complications Bankman-Fried discussed regarding the possibility of acquiring Celsius and replacing Mashinsky before it went bankrupt, the prosecution considered these conflicts manageable if Mashinsky acknowledged and accepted the deal.