Alex Mashinsky forgoes ‘conflict-free representation’ amid lawyer concerns

Former Celsius CEO Alex Mashinsky has attended a hearing in a New York courtroom where he waived any potential conflict of interest in his legal representation. The hearing, known as a Curcio hearing, involved the judge questioning Mashinsky about his lawyers. Mashinsky reportedly waived his right to any conflicts with lawyers Marc Mukasey and Torrey Young, who are also representing former FTX CEO Sam “SBF” Bankman-Fried in a criminal case. The judge informed Mashinsky that his lawyers couldn’t use documents that potentially conflicted with the two cases. The sentencing hearing for Bankman-Fried is set for March 28, while Mashinsky’s trial is expected to begin on September 17.

Mashinsky expressed his lack of expertise in court procedures, stating that it was his first time in a courtroom and that he was spending money to prove his innocence. He also mentioned that he assumed Bankman-Fried’s sentencing would be completed before his own trial, but there was uncertainty in the matter. In February, both Mashinsky and Bankman-Fried had Curcio hearings scheduled in response to concerns about potential conflicts of interest raised by prosecutors.

The U.S. government had alleged that Mashinsky partially blamed Celsius’ collapse on Alameda Research, a sister firm of FTX, possibly due to Bankman-Fried’s actions. By waiving potential conflicts in his case, Mashinsky allowed Bankman-Fried to proceed with his own Curcio hearing scheduled for February 21. Bankman-Fried, who was convicted of seven felony counts in November 2023, has remained largely out of the public eye since then. On February 19, images of Bankman-Fried in prison were circulated, giving a rare glimpse into his life behind bars.

Mashinsky had resigned as the CEO of Celsius in September 2022 and was indicted on seven felony counts in July 2023 related to securities fraud, wire fraud, and conspiracy to commit fraud during his tenure at the platform. As of now, he is free on $40 million bail until his trial.