Alex Mashinsky ends right to ‘conflict-free representation’ after concerns about lawyers

Former Celsius CEO Alex Mashinsky has dropped any conflict of interest claims after a brief hearing in New York court.

According to a February 20 X thread in the Energy City Press, Mashinsky appeared before Criscio in the United States District Court for the Southern District of New York and the judge asked him questions about legal representation. The former Celsius CEO has waived any right to conflict with his attorneys, Mark Mucasey and Torey Young, who have filed notices to file criminal charges against former FTX CEO Sam “SBF” Banman-Fried.

John George Coltle reported to Mashinsky that “Celsius could claim to be a victim of the Alameda research,” but lawyers were unable to use documents that contradicted the two cases. Bankman-Fried's sentencing hearing is scheduled for March 28, while Mashinsky's criminal trial is expected to begin on September 17.

“This is my first time in court,” Mashinsky said, according to the Inner City Press. “I am not an expert in this area. I have spent money to prove my innocence. I expect the SBF verdict will be finalized before my trial. But we will never know.

Mashinsky: I assume the SBF judgment will be finalized before my trial. But we cannot know. Judge: Did you give up the fight? Mashinsky: I will. Judge: Is your other lawyer here?

— Inner City Press (@innercitypress) February 20, 2024

Prosecutors in both the Mashinsky and Bankman-Fried cases asked Curcio's hearings in February to address concerns about conflicts of interest. The U.S. government said Mashinsky blamed FTX's sister company, Alameda Research, for Celsius' failure in part because of SBF's actions.

Related: Celsius distributes $2B crypto to 172k lenders

With Mashinsky waiving potential conflicts in his case, Bankman-Fried is scheduled to return to court on Feb. 21 for the same hearing as Curcio. In the year The former FTX CEO has been out of sight since he was indicted on seven criminal charges in November 2023, but on February 19, SBF photos revealed a rare glimpse into his life behind bars.

Mashinsky will step down as CEO of Celsius in September 2022. In July 2023, he was indicted on seven felony counts, including securities fraud, wire fraud and fraud in connection with his activities on the platform. At the time of publication, he was free on $40-million bail pending his trial.

Magazine: Tiffany Fong Burns Celsius, FTX and NY Post: Hall of Flame.